Patriotic Education and Corporate Social Responsibility: Evidence from a Mandatory Military Training Program

Posted: 12 Mar 2018

See all articles by Tao Chen

Tao Chen

Nanyang Technological University (NTU) - Division of Banking & Finance

Tan Youchao

Southwestern University of Finance and Economics (SWUFE)

Date Written: August 1, 2017

Abstract

We study the impact of patriotic education received by top executives on firms’ corporate social responsibility (CSR). Built on a temporary and mandatory military training program to freshmen in two top universities in China in 1990s, we find that firms with the presence and more executives who were forced to receive such patriotic education conduct and disclose more CSR activities and make more donations. The effect doubles (quintuples) for donation (CSR disclosure) if the CEO or Chairman received mandatory patriotic education. Further analysis shows that the effect concentrates in product and environmental dimensions. We also find that the effect is more pronounced for non-SOE firms and firms in weak institutional environment.

Keywords: Corporate Social Responsibility, Military Training, Patriotic Education, Natural Experiment

JEL Classification: G32, G34, M12

Suggested Citation

Chen, Tao and Youchao, Tan, Patriotic Education and Corporate Social Responsibility: Evidence from a Mandatory Military Training Program (August 1, 2017). Available at SSRN: https://ssrn.com/abstract=3136426

Tao Chen (Contact Author)

Nanyang Technological University (NTU) - Division of Banking & Finance ( email )

S3-B1A-08, Nanyang Avenue
Singapore, 639798
Singapore

Tan Youchao

Southwestern University of Finance and Economics (SWUFE) ( email )

55 Guanghuacun St,
Chengdu, Sichuan 610074
China

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