Corporate social responsibility (CSR) is one of the strategies for managing firms’ business activities but may have heterogeneity depending on ownership structures. This study investigates the association between group-affiliation and CSR activities. Drawing on a theory from the prior research, this study predicts that group-affiliated firms are less likely to invest on CSR activities. For instance, prior research finds that controlling shareholders expropriate the values of minority shareholders. As one of the motivations of investing on CSR activities is the harmonization among the stakeholders, it leads to the prediction that firms controlled by large shareholders are less likely to engage in CSR activities. Second, group-affiliated firms under poor financial performance benefit from other group members through sharing their financial resources. Thus, there is less incentive for managers of group-affiliated firms to increase their financial performance by conducting CSR. By leveraging firms listed in Korean stock market and CSR score from Korea Economic Justice Institute, the result shows that the groupaffiliation is negatively related to CSR activities. The result is consistent in case of applying propensity score-matched sample. Based on the findings of this study, this paper contributes to the related literature by showing the significant association between group-affiliation and CSR decisions.

Abstract
 1. Introduction
 2. Prior Literature and HypothesisDevelopment
  2.1. Motivations and Consequences of Engagingin CSR Activities
  2.2. Features of Group-affiliated Firms
  2.3. Hypothesis Development
 3. Research Design
  3.1. The Sample
  3.2. Main Variables
  3.3. Research Model
 4. Empirical Findings
  4.1. Descriptive Statistics and Correlation Matrix
  4.2. Empirical Results
  4.3. Additional Test
 5. Conclusion
 References

• Woo Jae Lee(College of Economics and Management, Chungnam National University) Corresponding Author