Do Lenders Value Corporate Social Responsibility? Evidence from China

• Published in: Journal of business ethics Vol. 104; no. 2; pp. 197 - 206
• Main Authors: Ye, Kangtao, Zhang, Ran
• Format: Journal Article
• Language: English
• Published: Dordrecht Springer 01.12.2011; Springer Netherlands; Springer Nature B.V
• Series: Journal of Business Ethics
• Subjects: Business and Management; Business Ethics; Business risks; Business structures; Capital costs; China; China (People's Republic); Corporate debt; Corporate philanthropy; Corporate Social Responsibility; Cost; Cost of equity; Debt; Debt financing; Debt financing cost; Developing countries; Education; Emerging markets; Environmental risk; Equity capital; Ethics; Financial investments; Financial leverage; financing; Fremdkapital; Investments; Kapitalkosten; Least squares method; Literature reviews; Management; mitigation; Philanthropy; Philosophy; Professional ethics; Quality of Life Research; Risk management; Size; Social responsibility; Social responsibility of business; Stakeholders; China, People's Rep; Corporate social responsibility; Corporate philanthropy; Debt financing cost; Risk management; China; Size

Drawing on risk mitigation theory, this article examines whether the improvement of firms' social performance reduces debt financing costs (CDFs) in China, the world's largest emerging market. Employing both the ordinary least square (OLS) and the two-stage instrumental variable regression...