This study examines how the performance impact of parent firm CSR on overseas subsidiaries may vary according to the task, the institutional, and the informational aspects of the signaling environment facing host country stakeholders. We argue that subsidiary primary activity, host country media freedom, and localized information concerning the parent firm influence host country stakeholders’ informational needs and the patterns of information dissemination and acquisition, thereby moderating the performance-enhancing effect of parent firm CSR. Our analysis of Japanese overseas investments from 2002-2014 largely supports our hypotheses and illustrates the significance of environmental contingencies in cross-border CSR signaling.

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Journal of World Business
Sprott School of Business

Jiang, G. F, Jung, J.C. (Jae C.), & Makino, S. (Shige). (2020). Parent Firm Corporate Social Responsibility and Overseas Subsidiary Performance: A Signaling Perspective. Journal of World Business, 55(6). doi:10.1016/j.jwb.2020.101141