How corporate social responsibility affects firms' innovation capability: A perspective on information and resource effects

Currently, with widespread attention from all walks of life, it has become a trend for companies to fulfil corporate social responsibility (CSR), but little is still known about how CSR affects firm innovation capability (FIC). Based on panel data of Chinese listed companies from 2010 to 2020, we empirically investigate how CSR affects FIC using econometrics and conclude the following: the relationship between CSR and FIC is inverted U-shaped, and the finding remains robust after controlling for endogeneity and heterogeneity. Alleviating financing constraints and reducing information asymmetry are confirmed to be two transmission channels through which CSR affects FIC.