<scp>CSR</scp> Assurance and Employee Overtime: Evidence From China

ABSTRACT This paper examines the effect of CSR assurance on employee overtime using a sample of Chinese listed companies from 2012 to 2023. To overcome data limitations, we use nighttime satellite data to construct an objective measure of employee overtime. Our results show that CSR assurance significantly reduces employee overtime. Channel tests indicate that CSR assurance curbs this practice by acting as an external monitoring mechanism that pushes firms to improve internal labor protection. This negative relationship is significantly stronger for firms under stricter public scrutiny or operating in regions with weaker formal labor protection. These findings offer new insights into the social dimension of CSR, demonstrating that assurance serves as a substantive governance tool to improve employee welfare. They also offer valuable guidance for firms and policymakers seeking to address the problem of employee overtime.