Ethical issues in cooperative innovation have long been a significant concern among innovation scholars. Drawing on signalling theory, this study argues that corporate social responsibility (CSR) ratings can signal potential moral hazards to partners, thereby influencing the level of cooperative innovation. Moreover, as the effectiveness of signals depends on the receivers' interpretation and evaluation, this study further examines the moderating effects of a focal firm's leading and monopolistic positions within its industry on the relationship between CSR ratings and cooperative innovation.
Using a longitudinal dataset of publicly listed firms on the Shanghai and Shenzhen Stock Exchanges in China from 2010 to 2020, this study integrates data from the CSMAR database, the Hexun website, and the CNRDS platform. The final sample comprises 2,911 unique firms and 23,045 firm-year observations.
The results indicate that CSR ratings exert a signalling effect that significantly enhances firms' level of cooperative innovation. Furthermore, this signalling effect is more pronounced in leading firms, giving rise to a signalling amplification effect. In contrast, the effect is weakened in monopolistic firms, resulting in a signalling attenuation effect.
This study contributes to the literature by identifying and validating the signalling effect of CSR ratings, thereby extending the understanding of their consequences. It further broadens the contextual boundaries by incorporating the focal firm's industry position as a contingent factor, and deepens insights into how ethical information asymmetry in cooperative innovation can be mitigated from a signalling perspective.
