Does hedge fund activism affect corporate social responsibility: evidence from China

This study examines how hedge fund activism impacts corporate social responsibility (CSR) in China. Findings reveal a notable CSR reduction linked to activist hedge funds, especially post-2014. This effect is more prominent in non-state-owned enterprises and firms with limited ownership concentration, highlighting hedge fund activism's governance impact on CSR. Additionally, we validate our findings through endogeneity tests. These empirical results enrich comprehension of hedge fund shareholder activism in emerging markets, yielding insights for the ongoing debate.