Chinese Merchant Group Culture, Corporate Social Responsibility, and Cost of Debt: Evidence from Private Listed Firms in China

Chinese merchant groups are commercial organizations that have developed over thousands of years. Given the importance private firms to China’s sustainable development, this study investigates impact traditional concept on corporate social responsibility (CSR) performance and cost debt, using listed during 2008–2020. We measure group culture based company’s geographic location. Ordinary least squares regression models used test hypotheses. According results, CSR from five is better than non-members. A positive relationship exists between strength performance; stronger among companies. The closer values, performance, which negatively related debt. findings in line with peer effect theory. Therefore, provides evidence it essential consider for firms’ strategies beyond formal financial regulatory factors China. This a first step exploring China economic application relationship.