Corporate Litigation, Social Responsibility, and Firm Productivity

Based on data from China's Shanghai and Shenzhen A-share listed companies from 2014 to 2023, this paper uses empirical analysis to explore the effects of corporate litigation and social responsibility on firm productivity. The study finds: first, corporate litigation significantly suppresses productivity; second, social responsibility plays a mediating role in the relationship between corporate litigation and productivity; third, the impact of litigation on productivity varies between firms with high and low audit fees; and fourth, there is a threshold effect of the asset-liability ratio on the impact of litigation on productivity. Focusing on the complex interrelations among corporate litigation, social responsibility, and productivity, this paper has significant theoretical value. It reveals the suppressive effect of litigation on productivity, clarifies the mediating mechanism of social responsibility, and identifies the heterogeneity of impact under different levels of audit fees and asset-liability ratios. These findings provide a theoretical basis for enterprises to mitigate litigation risks, fulfill social responsibility, and enhance productivity, thereby supporting optimal decision-making and sustainable development.