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This study aimed to understand the relationships among the institutional pressure and the level of compliance and corporate value. The research focuses on four main variables, which are regulatory pressure, normative pressure, and cultural-cognitive pressure as the institutional pressure, and the CSR score as the level of the firm’s compliance. We examined the impact of the institutional pressure on the firm’s compliance-level, together with the effect of compliance level on the corporate value. We analyzed the 3,792 CSR data listed in China’s A market and 31 province and city-level data from China. Results showed that institutional pressure had a positive influence on the firm’s compliance level. The corporate value was greater with a high compliance level when the institutional pressure was high. The firm’s compliance level negatively influenced corporate value when the institutional pressure was low. This study took into account a level of institutional pressures in three dimensions when investigating the effect of CSR compliance level on the corporate value. Thus, this study has a unique academic contribution by demonstrating that CSR activities can have a positive or negative effect depending on the institutional environment for each firm. The findings of this study also provide valuable insights to industry practitioners by suggesting the importance of considering the institution-specific condition when deciding to comply with the institutional pressure.
