The Relationship between Corporate Social Responsibility and Firm Value of Chinese Firms: Exploring from Degree of Internationalization

The purpose of this paper is to explore the relationship between corporate social responsibility (CSR) and firm value in the Chinese market and identify factors that may influence it. We discuss the relationship between CSR engagement in Chinese firms and firm value from a nonlinear perspective. In addition, we examine how the degree of internationalization in a firm may affect the relationship between CSR and firm value. We employ the Hausman test to compare a random-effects and a fixed-effects model, and after testing and comparison, the fixed-effects model was chosen in our paper. Using data from 314 firms listed in China's A-shares market from 2010 to 2017, we verify the U-shaped relationship between CSR and firm value. Meanwhile, the degree of internationalization will affect firm value but cannot positively regulate the relationship between corporate social responsibility and firm value.


Introduction
Since the 1970s, the relationship between corporate social responsibility (CSR) and frm value has attracted the attention of scholars worldwide. Although research on the impact of CSR on frm value has been fruitful, there is still controversy regarding the results. Te mainstream literature examines the relationship between CSR and frm value empirically using panel data. Most studies assume a linear or nonlinear relationship between these constructs and that a signifcant positive correlation exists between them [1]. In fact, most studies conclude that engagement in CSR activities is conducive to the improvement of frm value [2]. Waddock and Graves [3] put forward the concept of explicit and implicit costs, which demonstrates that frms that do not engage in CSR activities bear higher implicit and explicit costs and thus jeopardize their competitive advantage.
According to stakeholder theory, there is a two-way relationship between stakeholders and frms. Te way to realize frm value is to prioritize the interests of stakeholders. Stakeholder pressure can prompt frms to take their social responsibilities seriously, which can signifcantly improve proftability and frm value [4,5]. In practice, with the increasing concern about resources and the environment, human health, employee rights, and community development, engagement in CSR activities has become a universally accepted value in the business world.
Some believe that engagement in CSR activities is conducive to establishing a positive frm image, improving the frm reputation, and, in the long run, enhancing competitiveness, thus increasing frm value [6][7][8]. Ruf et al. [9], in an empirical study using the KLD database, fnd a positive correlation between engagement in CSR activities and frm value. Simpson and Kohers [10] identify a positive relationship between social performance and frm value in the context of US state-owned banks.
As for the motivations underlying the relationship between CSR and frm value, some scholars assert that engagement in CSR activities is not a simple form of altruism, but a win-win combination of altruism and egoism. Enterprises with a strong sense of social responsibility will actively introduce technology and increase their R&D investment to reduce resource consumption and costs, thereby improving frm value and working toward the corporate goal of maximizing profts while also preserving the environment. By contrast, if enterprises fail to pay attention to their social responsibilities or to maintain good relationships with various stakeholders, they may be unable to obtain resources and support and may sufer a loss of reputation, increased transaction costs, consumer resistance, brain drain, and various other problems, all of which reduce frm value.
Regarding the relationship between CSR and frm value, research conclusions to date mostly point to linear relationships. For example, Lu et al. [11] review studies conducted from 2002 to 2011, most of which identify a positive relationship between CSR and frm value. However, other researchers fnd a nonlinear relationship between CSR and frm value. For example, Wang et al. [12] studied 817 US companies listed in the Standard & Poor's Global Ratings and fnd a signifcantly inverted U-shaped relationship between engagement in CSR activities and frm value. However, Barnett and Salomon [13] fnd that there is a U-shaped relationship between CSR and frm value.
A literature review reveals that researchers have not yet reached a consensus on the relationship between CSR and frm value. Positive linear relationships, negative linear relationships, and curvilinear relationships have all been identifed; curvilinear relationships have mostly been identifed in the context of foreign-listed corporations. Western countries passed legislation on CSR fairly early, and their CSR systems are relatively complete. However, action in response to social responsibility in Chinese frms is still lacking. Research conclusions drawn by studying corporations operating in the West may not be applicable to the Chinese context. Terefore, this study on the relationship between CSR and frm value seeks to address this research gap. Our paper makes three important contributions to the literature. First, from a localized perspective, we study the relationship between CSR and frm value in Chinese-listed enterprises to improve our understanding of the economic consequences of Chinese enterprises' engagement in CSR activities. Second, based on stakeholder theory and the microeconomic law of diminishing marginal returns, we explore the Ushaped relationship between engagement in CSR activities and frm value to deepen our understanding of this topic both in theory and in practice. Tird, in the context of the international macroeconomic environment, we further examine the moderating role of the internationalization process in the relationship between CSR and frm value.
Based on the above-mentioned literature, this paper analyzes the value proposition of CSR engagement from the long-term perspective of sustainable competition based on stakeholder theory. Te positive impacts of engagement in CSR activities may be unclear in the short term; meanwhile, such engagement may consume a certain amount of frms' wealth and resources and increase their operating costs. In the long run, however, such behavior will catch the attention of stakeholders and increase their trust, which not only enhances frms' reputation but also maintains good social relationships, thereby improving their future prospects. In addition, continuous engagement in CSR activities can enhance external and internal cohesion, which will eventually increase frm value.
After multinational enterprises enter the overseas market, their social identity changes and they inevitably face new problems. Fully understanding the rules, norms, and beliefs of the local market enables them to respond to the demands of stakeholders in the international market and be actively involved in CSR activities. In doing so, they overcome the liability of newness [14,15], which in turn has a positive impact on frm value.
Considering CSR evaluation standards, a large number of studies use the quality of disclosed CSR reports to measure CSR performance. In this paper, we use the scores of a thirdparty ratings agency to measure CSR performance. Tis indicator not only allows us to analyze and evaluate the quality of information disclosed in the report but also includes specifc content evaluation descriptors related to actual CSR performance activities.
Our paper is organized as follows. Section 2 introduces the literature review and proposes our hypotheses. Section 3 outlines the data collection method and explains the screening process. Section 4 presents the results of our empirical study and tests the stability of the model through various methods. Section 5 summarizes the conclusions based on the fndings of the empirical analysis.

Theoretical Background and
Research Hypotheses 2.1. CSR and Firm Value. Carroll [16] put forward four concepts related to CSR: economic responsibility, legal responsibility, ethical responsibility, and charitable responsibility and defne them as follows: economic responsibility is the core responsibility of any business, legal responsibility implies that the frm must achieve economic goals within the limits of the law, ethical responsibility refers to the fact that frm behavior is consistent with social and ethical norms, and charitable responsibility is the CSR activities in which frms voluntarily engage. CSR may be narrowly defned as organizational responsibility to stakeholders other than shareholders. In a broad sense, CSR may be defned as the responsibility that all clearly defned stakeholders (including shareholders) associated with an organization should bear. CSR has always been a hot issue in academic research, not only in the economics and management felds but also in related felds. A large number of previous articles study CSR [13,[17][18][19][20], some of whom study the relationship between CSR and frm value [21][22][23][24]. According to stakeholder theory, meeting the needs of employees, customers, suppliers, organizations, and other groups is the key to rapid enterprise growth [25]. In addition, engagement in CSR activities as a typical stakeholder-oriented behavior can help enterprises establish and maintain good relationships with stakeholders and obtain more support and resources, which in turn gives them a competitive advantage and improves frm performance and value [26]. On one hand, from the perspective of consumers, frms that actively fulfll their social responsibilities are more likely to win the trust and goodwill of consumers, enhance consumers' willingness to purchase products, improve their reputation, and increase their market competitiveness. On the other hand, engaging in CSR activities can lead to being recognized by and receiving positive feedback from stakeholders such as shareholders, employees, customers, and suppliers, thereby maintaining a harmonious relationship with stakeholders, which also contributes to a sustainable competitive advantage [27]. It is also conducive to innovation and can be benefcial to human resources, frm reputation, organizational culture, and other intangible assets [28]. Finally, it can enable frms to achieve better performance and enhance their value.
Also, enterprises realize value creation through resource exchange with stakeholders. Tus, the better the relationship between a frm and its stakeholders, the more successful it will be. Engagement in CSR activities can improve the satisfaction of all stakeholders, thereby improving frm value [29]. For example, engagement in CSR activities can reduce businesses' risks and costs of capital; under these circumstances, suppliers are willing to provide higher-quality products and more preferential discounts. Enterprises with a sense of social responsibility are more likely to attract and motivate exceptional employees while reducing their labor costs [30], CSR can also improve consumer loyalty [31]. In addition, the government may put less pressure on enterprises that take their social responsibilities seriously [32]. When unexpected events occur, a good brand image can help weaken their negative infuence. Active participation in CSR activities can bring about competitive advantages and encourage the formation of intangible assets such as innovation capabilities, human resources, reputation, and culture [28].
However, it is impossible to invest in CSR activities while also maintaining linear growth in terms of fnancial performance. According to the microeconomic rule of diminishing marginal returns, frms' growth in value diminishes as their investment in social responsibility increases [12]. While risk-averse corporate managers are prone to overinvest in CSR activities to reduce nonsystematic risks, shareholders can avoid such risks by diversifying their investment portfolios. Terefore, shareholders are often in favor of reducing involvement in CSR activities to make more risky investments that may increase frm value. Conversely, increasing investment in CSR activities at the expense of frm value may be the result of managers' personal motivations. When enterprises increase their investment in socially responsible activities, part of this expenditure is inevitably transferred to stakeholders, which leads to an increase in product prices and thus reduces investment returns. Although stakeholders with a sense of social responsibility may be willing to sacrifce a portion of their wealth to support socially responsible activities, they still expect reasonable returns. If their costs continue to increase and their fnancial returns continue to decrease, some stakeholders may begin to withdraw resources. Tat is, within a certain range of CSR investment, frm value increases, but once such investment exceeds a certain threshold, it tends to decrease. We, therefore, hypothesize the following. H1: Tere is an inverted U-shaped relationship between corporate social responsibility and frm value.

CSR and Firm Value of International Enterprises.
Studies have shown that the internationalization of multinational Chinese enterprises is motivated by the desire to avoid domestic restrictions, seek new technologies and resource pools in the international market, realize value appreciation, and keep pace with competitors [33].
Multinational enterprises from developed countries are mainly responsible for the development of global social responsibility [34]. Such companies usually have a good image in their own countries and often choose CSR strategies based on the host country's emphasis on environmental protection or labor rights to strike a balance between the local and global responses. While international diversifcation makes multinational enterprises "better," it also makes them "worse" [35]. Attig et al. [36] study 3,040 American companies and fnd a positive relationship between internationalization and CSR. Te more the laws and regulations of the host country emphasizes social issues, the more obvious the role of internationalization in promoting CSR activities will be. In a study of British enterprises, Brammer et al. [37] reveal that the relationship between internationalization and CSR is not clear. Only when the host country has high CSR standards can internationalization increase engagement in socially responsible activities among multinational enterprises. Surroca et al. [38] note that the higher the expectations of stakeholders in the home country in terms of CSR, the greater the possibility that multinational enterprises will transfer their irresponsible practices to their subsidiaries.
Te greater the degree of internationalization of multinational enterprises, the higher their commitment to overseas assets will be. Tis embeddedness in the overseas environment attracts attention and doubt from global stakeholders, which encourages enterprises to further increase their engagement in CSR activities to meet the demands of various stakeholders [36]. Not surprisingly, cultural and systemic diferences shift their focus to social issues. Te degree of internationalization afects the standards and expectations that multinational enterprises face. Te greater the degree of internationalization, the more the expectations and demands of customers, investors, creditors, employees, regulatory agencies, and other stakeholders from the host country must be considered, and the broader the scope of CSR activities will be [39]. In addition, reputation has a contagious efect; for example, irresponsible behavior may initiate a chain reaction once it is discovered and made Journal of Environmental and Public Health well known. Terefore, frms with a high degree of internationalization risk negative spillover from reputational damage [40].
For example, 19 US-listed Chinese enterprises were suspended or delisted in 2010 due to suspected fnancial fraud, which led to a crisis of trust in Chinese enterprises. In 2016, Alibaba's platform sales were delisted by the IACC, and the frm faced unprecedented public pressure and reputational loss in the international capital market. Zyglidopoulos et al. [41] demonstrate that the business activities of a multinational enterprise in one country afect its reputation and image in other countries and that actively fulflling social responsibilities can alleviate those negative reputational impacts. Wang and Li [42] also point out that the reputations of multinational enterprises are no longer subject to geographical restrictions. Reputational damage may lead to the collapse of stakeholder trust and thus have a negative efect on frms' future business activities.
Te problem of insufcient legal recognition has continued to afect multinational enterprises, which must constantly assert their commitment to legality to avoid adverse consequences and win greater support from stakeholders. Marano et al. [43] point out that undertaking CSR activities has become a mainstream business practice in the international market. In this study, we posit that the higher the degree of internationalization, the more frms will incorporate CSR activities into their regular operations. We, therefore, assert our formal hypothesis as follows.
H2: Te degree of internationalization positively afects the relationship between CSR and frm value.

Data, Variables, and Methodology
3.1. Sample and Data. For our sample, data for 314 frms listed on China's A-share market were collected for the 2010 to 2017 period. Te data were drawn from two databases: Hexun.com's CSR and CSMAR (China Stock Market and Accounting Research) databases. Hexun.com is a representative third-party rating agency that measures CSR; it is similar to the KLD database but in the context of CSR. Te CSMAR database organization is the frst and largest professional high-tech frm engaged in the design and development of accurate fnancial and economic databases and has wide coverage, complete-time intervals, and rich indicators and is therefore the most widely used database in the Chinese academic community.
Te selection process of the sample data in our paper is as follows. (1) Financial frms are excluded due to their unique characteristics; (2) ST (special treatment) and PT (particular transfer) frms are removed because they are fnancially abnormal and thus not comparable with other frms; (3) Firms whose data lacks continuity and those with missing information are excluded due to data insufciency and other issues related to the frms themselves. For example, we were unable to collect rating data for many of the frms selected. Other data such as Tobin's Q, overseas sales revenue, total sales revenue, assets-to-liabilities ratio, frm ownership type, total assets, and other variables were obtained from the CSMAR database. Initially, data for more than 3,500 frms were obtained, but due to missing data in many cases, layerby-layer screening was necessary. By matching data from the two databases by date and imposing multiple restriction conditions, we were able to obtain our sample data.

Research Model
3.2.1. Dependent Variable. When resources are idle, frms are more likely to make charitable investments or engage in social activities. To account for stakeholders' power, we assert that the more engaged frms are in CSR activities, the more valuable they are. Because it ofers many advantages, Tobin's Q is used to measure frm value in our paper. First, it is a prominent forward-looking indicator that refects shareholders' expectations of a frm's future performance. Second, it is a combination of multiple frm performance variables, such as total sales, profts, cash fow, and net income. Tis comprehensive approach to frm performance provides reliable evidence of frm value. Tird, it is an objective measure that does not refect subjective evaluations of frm performance; therefore, it is the preferred indicator to measure the real value of a frm [44]. In this paper, Tobin's Q is calculated by taking the sum of the market value of equity and the book value of total liabilities, then dividing it by the book value of total assets. Te result is used to measure the frm's economic performance and holdings of idle resources [45].

Independent Variable.
Multiple methods have been used to measure CSR, including several questionnaire methods [46]. Many scholars believe that self-disclosure largely refects the extent of a frm's CSR activities, and most third parties (e.g., KLD, CASS, and SNAI) also consider the frm's self-reporting as important evidence of such activities [47]. Tis paper therefore also uses data from thirdparty rating agencies to measure CSR.
Te dependent variable for this paper is the t + 1 period overall CSR score from Hexun.com. Scores range from 0 to 100; the higher the score, the higher the level of engagement in CSR activity. Hexun.com's CSR data have been used by many previous academic studies [22,48]. Teir Social Responsibility Index is a rating system divided into fve frstlevel indicators: shareholder responsibility, customer and consumer rights responsibility, supplier and employee responsibility, environmental responsibility, and social responsibility. To ensure the scientifc measurement of the CSR engagement of all A-share listed companies in the Shanghai and Shenzhen stock markets, second-and thirdlevel indicators are included to complement frst-level indicators. Te second-level indicator contains 13 questions, and the third-level indicator contains 37 questions. Tis index has been recognized and used by many Chinese scholars for its accuracy and comprehensiveness.

Moderator Variable.
We use the ratio of overseas sales to total sales to measure of the degree of internationalization (DOI) of Chinese frms. On the one hand, it is a commonly used measure that directly refects the extent of frms' internationalization and thus many western scholars have also adopted this indicator. On the other hand, due to data availability, most Chinese listed frms report overseas income and total income in their fnancial statements; thus, this ratio can be easily calculated. However, few frms disclose all information about their overseas subsidiaries. Although it is relatively easy to obtain DOI-related data, the acquisition of other data for international indicator data are more or less difcult. Like Attig et al. [36], Liu et al. [49] also use this calculation method to measure the DOI in their studies.

Control Variable.
We include several control variables because of their potential efect on the relationship between CSR and frm value. In previous studies [45], Board Size has been used as a control variable because it is related to frm value and CSR. Tus, it is used as a control variable in our paper. Firm Size is another control variable which has been shown to infuence CSR and frm value [22,24]. Te reason for this is that large frms have a well-established reputation and attract stakeholder groups that demand more attention [50]. Leverage is also used as a control variable in our paper because the level of debt is related to both CSR and frm value [51]. For example, frms with higher debt levels may be more concerned with short-term goals such as proft maximization rather than long-term goals such as CSR [50]. Firms with a higher R&D intensity can achieve higher returns, and their unique technical knowledge and intangible assets may help them improve frm value [52]. Because the number of Subsidiaries with considerable operational autonomy may improve frm value [53], it is also included as a control variable in our paper.

Formatting of Mathematical Components.
To test our hypotheses, panel data will be used to estimate the equations in this paper. Te models for individual I � 1, 2, 3, 4, . . ., N, which is observed at times t � 1, 2, 3, . . ., T, are as follows: In Models (1)-(4), Tobin's Q i,t+1 is the value of frm i at time t + 1, CSR i,t is the CSR score of frm i at time t, BOARDSIZE, FIRMSIZE, LEV, R&D, and SUB are control variables, DOI is the moderating variable, μ t is the time-fxed efects, and ε i,t is a random disturbance term. Table 1 presents the descriptive statistics for the dependent, independent, and control variables used in our study. It can be seen from the statistical results that the mean of Tobin's Q in our sample is 1.644 with a standard deviation of 1.481. Te mean of CSR is 42.522, and its range is from 2.900 to 79.930, which shows that there is a large variance in the data for the observed frms. Te mean of DOI is 0.212 with a standard deviation of 0.221, thus indicating that overseas sales are one of the most important sources of frms' operating income. Te means of Board Size, Firm Size, Leverage, R&D, and Subsidiaries are 9.184, 0976, 0.491, 0.440, and 23.668, respectively. Table 2 represents the Pearson correlation coefcient matrix of the main variables used in the model. Te correlation coefcient between frm value (Tobin's Q) and CSR is −0.023, which is not signifcant; this implies that engagement in CSR activities can lower frm value, but this fnding should be verifed in another empirical model. Te correlation coefcient between frm value (Tobin's Q) and DOI is 0.069, which difers from the fndings of previous studies (e.g., −0.0106 and not signifcant in [54]; −0.14 in [55]), but it is within the 1% signifcance level. For greater accuracy and considering that it is a major issue in this paper, it will be tested in a subsequent model. As for the control variables, most of the correlation coefcients are signifcant and do not exceed 0.8, thus indicating that all meet the requirements of the model.

Journal of Environmental and Public Health
Te multicollinearity problem cannot be ignored in an empirical regression analysis. If it is not controlled well, the accuracy of the results will be jeopardized. If the VIF values of the variables in the model exceed 10, it can be assumed that the model has multiple collinearity problems; if they are less than 10 but greater than one, it can be assumed that there is no multicollinearity problem. Moreover, TOL (tolerance) and VIF are closely linked, as TOL is the reciprocal of VIF. In the model, TOL ranges from zero to one; therefore, multicollinearity can also be measured using its values. If TOL is closer to zero, there is a much greater probability of multicollinearity. However, if TOL is closer to one, there is likely to be no multicollinearity problem. From Table 3, it can be seen that the maximum of VIF is 2.40, the mean is 1.410, and TOL ranges from 0.416 to 0.975. Consequently, we conclude that the multicollinearity problem does not exist in our empirical model.
Considering that we use panel data in our paper and to enhance the credibility of the results, we choose the hierarchical regression method in this paper. Also, we employ the Hausman test [56] to compare the random-efects and fxed-efects models (see Table 4 for the results), and after testing and comparison, the fxed-efects model was chosen in our paper. Meanwhile, the fxed-efects model can also partially control or solve the endogeneity problem to a certain extent [47]. Table 4 represents the regression results. Model 1 is a basic regression that includes all control variables. In Models 2 and 3, we add the main independent variable (CSR) to test H1. Model 4 is the full model, including all control and explanatory variables. In Model 2, the coefcient of CSR is −0.0067, and it is signifcant at the 1% level. Tis result indicates that in the pure linear relationship, engagement in CSR activities has a negative relationship with frm value (Tobin's Q). However, when we add the quadratic term of CSR in Model 3, its coefcient is −0.0247 (p < 0.01), the coefcient of CSR 2 is 0.0002, and the signifcance level is 1%. Tis fnding suggests that engagement in CSR activities can slow the growth of frm value (Tobin's Q) in the early stages, but this negative impact will become positive at a certain point. In other words, engagement in philanthropic activity requires frms to make economic sacrifces to a certain degree. Tus, in the early stages, as CSR activities increase, the frm value will decrease. Ten, the frm value will increase once engagement in CSR activities exceeds a critical point because such engagement can beneft the frm by enhancing its brand image and reputation. Hence, engagement in CSR activities has a U-shaped rather than an inverted U-shaped relationship with frm value. Terefore, H1 is rejected. In Model 4, the coefcients of CSR and CSR 2 are similar to those in Model 3 at the same signifcance levels, and the coefcient of DOI is −0.925 with a signifcance level of 5%. Tus, we conclude that as the DOI of Chinese frms improves, it negatively moderates the relationship between CSR and frm value. Terefore, H2 is rejected.
To ensure the robustness of the models and their results, we now run a series of robustness tests. First, according to the protocol followed by Ma et al. [47], we use the panel GLS method to rerun the regression. Because we utilize unbalanced panel data, the GLS method can accommodate heteroscedasticity and autocorrelation and avoid other interference factors. Te results are reported in Table 5, where it can be seen that the U-shaped relationship between CSR and frm value (Tobin's Q) still exists and DOI negatively afects the relationship between CSR and frm value. Tus, the robustness tests indicate that the results have strong stability.

Journal of Environmental and Public Health 7
where P i,t+1 is the end-of-day stock price three months after the end of the fscal year, EPS i,t is earnings per share of frm i at time t, BPS i,t is book value per share of frm i at time t, BOARDSIZE i,t is boardsize of frm i at time t, FIRMSIZE i,t is the log total assets of frm i at time t, LEV i,t is total debt/total assets of frm i at time t, R&D i,t is the research and development expenses of frm i at time t, SUB i,t is the number of subsidiaries a frm i at time t, DOI i,t is the ratio of overseas sales to total sales a frm i at time t, CSR i,t is the CSR score of frm i at time t, and ε i,t is the error term. Te results are reported in Table 6. Te values for EPS and BPS are signifcant at the 1% level in all models. Te coefcients of DOI are −5.350, −5.022, and −4.955, respectively, and all values are statistically signifcant at the 5% level, which verifes our previous results. Furthermore, the U-shaped relationship between CSR and frm value is once again evident. Terefore, the verifcation methods used in our robustness tests further support the credibility of our empirical results.

Conclusions
Although the relationship between CSR and frm value has been widely studied, the results have been inconsistent. Most researchers follow instrumental stakeholder theory in analyzing the linear relationship between them. Both positive and negative relationships have been found in previous studies. We expand upon this research by focusing on nonlinear efects and using data from China, the largest developing country in the world. Sun et al. [23] identify an inverted U-shaped relationship between engagement in CSR activities and frm value by using American corporate data. Te purposes of this paper are to explore the relationship between CSR and frm value in the context of the Chinese market and to identify other factors that may infuence this relationship. We examine CSR engagement and frm value in Chinese frms from a nonlinear perspective, which is a novel approach. In addition, we include a moderating variable (DOI) in our empirical analysis as a factor that may afect the relationship between CSR and frm value. Te contributions of this paper are as follows.
First, we fnd that there is a U-shaped relationship between CSR and frm value in China's listed companies, as opposed to Sun et al.'s [23] and Singh et al.'s [22] inverted Ushaped relationship. Engagement in CSR activities constitutes a social contribution that initially requires frms to sacrifce their economic benefts to some extent; for this reason, frm value declines with an increase in CSR activities in the early stages. On the one hand, although engagement in CSR activities may balance the interests of various stakeholders, these interests are not easily reconciled. When engagement in CSR activities exceeds a certain level, frms may beneft not only in terms of tangible assets but also in terms of intangible assets. On the other hand, related investments may improve production efciency, thereby leading to a reputational upgrade. In the second stage, CSR improves frm value. Hence, the relationship between CSR and frm value is most accurately represented by a U-shaped curve. China is the largest emerging economy in the world, with a unique market environment and other factors that infuence frm value, and Chinese frms have not encountered the same problems as American frms. As such, the results may be quite diferent from those in a Western context.
Second, although many factors afect the relationship between CSR and frm value, we study it from an international perspective by analyzing the degree of internationalization (DOI). Although some studies have been conducted on the infuence of DOI on frm value [62,63], some scholars have studied CSR from the perspective of DOI in recent years [36,64]. Our research reveals that DOI undermines frm value because Chinese frms that have access to international markets encounter a series of obstacles such as the liability of foreignness, product popularity, and trade protection policies in the host country. Due to these obstacles, DOI will afect frm value but cannot positively regulate the relationship between CSR and frm value. Still, this fnding contributes to the research on CSR and frm value.
Tis paper has both theoretical and managerial implications. Regarding its theoretical implications, our paper extends the application of stakeholder theory in the context of CSR. In previous research, stakeholder theory has been used to study CSR engagement [65]. Specifcally, some stakeholders (such as consumers) may strongly penalize businesses in the short term, while other stakeholders, such as long-term investors, may not view engagement in CSR as a frm risk. Tus, stakeholder relationships are a resource advantage that can be used to create competitive advantages Standard errors in brackets; * * * p < 0.01, * * p < 0.05, * p < 0.1. [26]. As this study is based on stakeholder theory, we consider the nature of the relationship between vertical stakeholders and frms rather than a simple set of short-term relationships. Tis paper studies Chinese listed frms from the perspective of stakeholder theory, which is a setting conducive to studying the relationship between CSR and frm value. Also, CSR engagement can promote sustainable development [66], which may improve frm value in the long term. Engagement in CSR activities, as an indispensable key to frm performance, clearly afects frm value. In our paper, the results do not generate the inverted U-shaped relationship as identifed in [23]. However, our results lay a foundation for future researchers to follow in considering the relationship between CSR and frm value and how DOI afects that relationship.
Our results also indicate that business leaders and management practitioners should change their traditional ideas such that they have a sense of long-term development. Because there is a U-shaped relationship between CSR and frm value, if business managers focus only on their companies' short-term interests, the efect of engaging in CSR on frm value will be minimal and its positive efects will only be evident in the second stage; therefore, long-term management vision is necessary. Also, DOI is a reality that Chinese frms cannot avoid, although it will hinder the relationship between engagement in CSR and frm value to some extent in the short term. From a long-term strategic point of view, DOI will bring benefts to frms, such as broader market access and access to global resources. Accordingly, business managers should have the confdence and persistence to manage their frms not only to balance the interests of all stakeholders, but also to encourage employees to realize their value in the company and foster relationships among customers, employees, investors, and other stakeholders to achieve common goals. DOI also promotes the active pursuit of technological innovation while increasing R&D investment and long-term competitive advantages, all of which help to improve frm value.
Finally, despite our careful research design, rigorous empirical study, and important contributions, several limitations exist that point to the need for future research. First, our research sample consisted of listed frms from the country with the largest developing economy, that is, China. Because of China's special market conditions and economic environment, the results may not be representative of other emerging countries. Future studies should utilize samples from diferent emerging countries or developing countries to make a horizontal comparison and reach a universal conclusion. Second, our paper is limited by indicator selection. Tat is, CSR data are scored by the Hexun rating, and although this method has been widely used in previous studies, it may not be universal because we use only the total score. Also, our DOI variable is represented by the ratio of overseas sales revenue to total income; thus, it exhibits a certain degree of unilateralism. Hence, future studies should choose the date indicator from a more representative and diversifed database and collect data through other channels such as a feld or questionnaire surveys to obtain more complete data. Tird, the sample frms used in our research include those involved in the stock market, but some corporations with international infuence such as Huawei are not publicly listed. Future studies should be extended to include nonlisted frms, nonpublic frms, and even small and medium-sized enterprises with multinational operations. Although many nonlisted frms do not publish annual reports, data may be collected through questionnaires or feld visits to ensure the credibility and practicality of the results. Fourth, our paper ignores a very important distinction between state-owned enterprises (SOEs) and nonstate-owned enterprises (non-SOEs). In future research, this distinction should be fully taken into consideration; data from frms in diferent industries such as the services, manufacturing, and petrochemical industries may also be considered, and specifc research on transnational operations in diferent industries may be conducted.

Data Availability
Te data used to support the fndings of this study are available from the corresponding author upon request.

Conflicts of Interest
Te authors declare that there are no conficts of interest.