The study examines the impact of corporate social responsibility (CSR) activity on the firm market value, in particular, market capitalization of tour operators listed on Chinese stock markets. This study employs panel data analysis methods to examine endogeneity concerns in observational data. The balanced panel data includes a total of 1,296 observations with 27 cross-sections of tour operators listed on Chinese stock markets and with 48 time-specific periods from March 2006 to December 2017. The results indicate that CSR activity has a negative impact on the market value of the firm for the concurrent period, but from one-period time lag and afterwards CSR activity has a strong positive impact on the market value and sustains its positive impact on the market value even for a two-period time lag. The findings suggest that the economic effect of CSR activity on the firm market value tends to take some degree of lagged effects to be fully showcased in the market capitalization of tour operators and travel companies listed on Chinese stock markets. The findings suggest that, though CSR activity may carry some financial risk for an immediate short-term, tour operators must put a lot of time and effort into making CSR actions effective.

Abstract
1. Introduction
2. Literature Review and HypothesisDevelopment
    2.1. CSR Practices in the Travel and TourismIndustry of China
    2.2. CSR Activity and Corporate FinancialPerformance
    2.3. CSR Activity and Time Lags of EconomicReturns in Literature on Tourism
3. Data and Measurements
    3.1. Data and Descriptive Statistics
    3.2. Measurement of CSR Activity
    3.3. Correlation Analysis
4. Empirical Results
    4.1. Unit Root Tests
    4.2. Results of Panel Regression Analysis
4. Discussion and Implication
5. Conclusion and Limitation
References

• Jung Wan LEE(School of International Economics and Trade, Anhui University of Finance and Economics (AUFE)) Corresponding Author.