Fiscal monitoring policy and corporate social responsibility
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Huom! Tiedosto avautuu julkiseksi: 28.04.2028
https://creativecommons.org/licenses/by-nc-nd/4.0/
Pysyvä osoite
Kuvaus
© 2026. This manuscript version is made available under the CC-BY-NC-ND 4.0 license https://creativecommons.org/licenses/by-nc-nd/4.0/
This paper examines how state-level fiscal monitoring policy (FMP) affects firms' corporate social responsibility (CSR) performance. Using a sample of S&P 500 firms from 2001 to 2020 and exploiting staggered FMP adoption across U.S. states, we employ a difference-in-differences framework and document a positive, statistically significant relationship between FMP adoption and firms' CSR. Economically, FMP adoption is associated with an approximately 2.64% increase in CSR performance. We can interpret this result as fiscal monitoring reducing local corruption and strengthening institutional governance by enhancing fiscal transparency, enforcement credibility, and long-term orientation. While CSR is the outcome of interest, our findings provide new evidence on the private-sector spillover effects of fiscal monitoring policy, extending the FMP literature beyond public-sector outcomes. Additional analyses show that environmental dynamism, product-market competition, financial constraints, and geographic dispersion weaken the FMP–CSR relationship, whereas right-to-work laws strengthen it. Overall, our study highlights subnational fiscal governance as a novel institutional determinant of corporate behavior.
Emojulkaisu
ISBN
ISSN
1873-5665
1044-0283
1044-0283
Aihealue
Kausijulkaisu
Global finance journal|71
OKM-julkaisutyyppi
A1 Alkuperäisartikkeli tieteellisessä aikakauslehdessä (vertaisarvioitu)