Corporate social responsibility: Is it rewarded by the corporate bond market? A critical note
Journal of Business Ethics (forthcoming)
| Abstract | The question of whether corporate social responsibility (CSR) has a positive impact on firm value has been almost exclusively analysed from the perspective of the stock market. We have therefore investigated the relationship between the valuation of Euro corporate bonds and the standards of CSR of mainly European companies for the first time in this article. Generally, the debt market exhibits a considerable weight for corporate finance, for which reason creditors should basically play a significant role in the transmission of CSR into the valuation of financial instruments. Given that socially responsible firms are often regarded as economically more successful and less risky, they should have lower risk premia. The results of the empirical analysis, however, reveal that based on an extensive data panel the risk premium for socially responsible firms – according to the classification by SAM Group – was ceterius paribus higher than for non-socially responsible companies. However, only one case of the models investigated was weakly significant. Thus, largely the relationship has to be classified as marginal; so CSR has apparently not yet been incorporated into the pricing of corporate bonds. | |||||||||
| Keywords | No keywords specified (fix it) | |||||||||
| Categories | ||||||||||
| Options |
|
|||||||||
Download options| PhilPapers Archive |
Upload a copy of this paper Check publisher's policy on self-archival Papers currently archived: 5,705 |
| External links |
 |
| Through your library | Configure |
Similar books and articlesStephen Bear, Noushi Rahman & Corinne Post (forthcoming). The Impact of Board Diversity and Gender Composition on Corporate Social Responsibility and Firm Reputation. Journal of Business Ethics.
Irina Soboleva (unknown). Corporate Social Responsibility in Russia: Peculiarities and Problems. :269-282.
Iain Clacher & Jens Hagendorff (2012). Do Announcements About Corporate Social Responsibility Create or Destroy Shareholder Wealth? Evidence From the UK. Journal of Business Ethics 106 (3):253-266.
Christian Fieseler (2011). On the Corporate Social Responsibility Perceptions of Equity Analysts. Business Ethics 20 (2):131-147.
Kangtao Ye & Ran Zhang (2011). Do Lenders Value Corporate Social Responsibility? Evidence From China. Journal of Business Ethics 104 (2):197-206.
Irina Soboleva (2007). Corporate Social Responsibility in Russia. International Corporate Responsibility Series 3:269-282.
Ronald Paul Hill, Thomas Ainscough, Todd Shank & Daryl Manullang (2007). Corporate Social Responsibility and Socially Responsible Investing: A Global Perspective. Journal of Business Ethics 70 (2):165 - 174.
Yongtao Hong & Margaret L. Andersen (2011). The Relationship Between Corporate Social Responsibility and Earnings Management: An Exploratory Study. Journal of Business Ethics 104 (4):461-471.
Junwei Shi, Haiyan Fu & Lijun Hu (2007). Social Responsibility, Social Capital, and Corporate Competitive Advantage in Transitional China. International Corporate Responsibility Series 3:377-394.
Yan Leung Cheung, Weiqiang Tan, Hee-Joon Ahn & Zheng Zhang (2010). Does Corporate Social Responsibility Matter in Asian Emerging Markets? Journal of Business Ethics 92 (3).
Analytics
Monthly downloads |
Added to index2010-02-24Total downloads35 ( #34,187 of 549,198 )Recent downloads (6 months)1 ( #63,397 of 549,198 )How can I increase my downloads? |
My notes
Discussion
