Corporate Social Responsibility: Is it Rewarded by the Corporate Bond Market? A Critical Note [Book Review]
David Bourget (Western Ontario)
David Chalmers (ANU, NYU)
Rafael De Clercq
Jack Alan Reynolds
Learn more about PhilPapers
Journal of Business Ethics 96 (1):117-134 (2010)
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||corporate social responsibility corporate citizenship sustainability triple bottom line social performance credit spreads corporate bond evaluation|
|Categories||categorize this paper)|
Setup an account with your affiliations in order to access resources via your University's proxy server
Configure custom proxy (use this if your affiliation does not provide a proxy)
|Through your library|
References found in this work BETA
Matthew Haigh & James Hazelton (2004). Financial Markets: A Tool for Social Responsibility? [REVIEW] Journal of Business Ethics 52 (1):59-71.
D. Bruce Johnsen (2003). Socially Responsible Investing: A Critical Appraisal. [REVIEW] Journal of Business Ethics 43 (3):219 - 222.
Lee E. Preston & Douglas P. O’Bannon (1997). The Corporate Social-Financial Performance Relationship. Business and Society 36 (4):419-429.
Bert Scholtens (2006). Finance as a Driver of Corporate Social Responsibility. Journal of Business Ethics 68 (1):19 - 33.
Mark Sharfman (1996). The Construct Validity of the Kinder, Lydenberg & Domini Social Performance Ratings Data. Journal of Business Ethics 15 (3):287 - 296.
Citations of this work BETA
No citations found.
Similar books and articles
Stephen Bear, Noushi Rahman & Corinne Post (2010). The Impact of Board Diversity and Gender Composition on Corporate Social Responsibility and Firm Reputation. Journal of Business Ethics 97 (2):207 - 221.
Irina Soboleva (2007). Corporate Social Responsibility in Russia: Peculiarities and Problems. International Corporate Responsibility Series 3:269-282.
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. [REVIEW] 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. [REVIEW] 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):401 - 413.
Added to index2010-02-24
Total downloads53 ( #46,882 of 1,699,804 )
Recent downloads (6 months)5 ( #128,702 of 1,699,804 )
How can I increase my downloads?