Have a personal or library account? Click to login
The impact of environmental, social and corporate governance responsibility on the cost of short-and long-term debt Cover

The impact of environmental, social and corporate governance responsibility on the cost of short-and long-term debt

Open Access
|Jul 2021

References

  1. Aguinis, H., & Glavas, A. (2012). What we know and don’t know about corporate social responsibility: A review and research agenda. Journal of Management, 38(4), 932-968.10.1177/0149206311436079
  2. Ameer, R., & Othman, R. (2012). Sustainability practices and corporate financial performance: A study based on the top global corporations. Journal of Business Ethics, 108(1), 61-79.10.1007/s10551-011-1063-y
  3. Baird, P. L., Geylani, P. C., & Roberts, J. A. (2012). Corporate social and financial performance re-examined: Industry effects in a linear mixed model analysis. Journal of Business Ethics, 109(3), 367-388.10.1007/s10551-011-1135-z
  4. Botosan, C. A. (1997). Disclosure level and the cost of equity capital. Accounting Review, 72(3), 323-349.
  5. Botosan, C. A. (2006). Disclosure and the cost of capital: What do we know?. Accounting and Business Research, 36 (special issue), 31-40.10.1080/00014788.2006.9730042
  6. Brooks, C., & Oikonomou, I. (2018). The effects of environmental, social and governance disclosures and performance on firm value: A review of the literature in accounting and finance. British Accounting Review, 50(1), 1-15.10.1016/j.bar.2017.11.005
  7. Cheng, B., Ioannou, I., & Serafeim, G. (2014). Corporate social responsibility and access to finance. Strategic Management Journal. https://doi.org/10.1002/smj.213110.1002/smj.2131
  8. Cheng, C. S. A., Collins, D., & Huang, H. H. (2006). Shareholder rights, financial disclosure and the cost of equity capital. Review of Quantitative Finance and Accounting, 27(2), 175-204.10.1007/s11156-006-8795-2
  9. Clark, G., Feiner, A., & Viehs, M. (2015). From the stockholder to the stakeholder. Arabesque Group.
  10. Culbertson, J. M. (1957). The term structure of interest rates. The Quarterly Journal of Economics, 47(4), 485-517. https://doi.org/10.2307/188570810.2307/1885708
  11. Donaldson, T., & Preston, L. (1995). The stakeholder theory of the corporation: Concepts, evidence, and implications. Academy of Management Review, 20(1), 65-91.10.2307/258887
  12. Erragragui, E. (2018). Do creditors price firms’ environmental, social and governance risks?. Research in International Business and Finance, 45, 197-207.10.1016/j.ribaf.2017.07.151
  13. European Commission. (2001). Green paper: Promoting a European framework for Corporate Social Responsibility. Brussels: Commission of the European Communities.
  14. Fisher, I. (1930). The theory of interest. New York: Macmillan.
  15. Freeman, E. R. (1984). Strategic management: A stakeholder approach. Boston: Pitman.
  16. Friedman, M. (1970, September 13). The social responsibility of business is to increase its profits. The New York Times, 122-126.
  17. Ge, W., & Liu, M. (2015). Corporate social responsibility and the cost of corporate bonds. Journal of Accounting and Public Policy, 34(6), 597-624.10.1016/j.jaccpubpol.2015.05.008
  18. Ghoul El, S., Guedhami, O., Kim, H., & Park, K. (2018). Corporate environmental responsibility and the cost of capital: International evidence. Journal of Business Ethics, 149(2), 335-361.10.1007/s10551-015-3005-6
  19. Ghoul El, S., Guedhami, O., Kwok, C. C. Y., & Mishra, D. R. (2011). Does corporate social responsibility affect the cost of capital?. Journal of Banking and Finance, 35(9), 2388-2406.10.1016/j.jbankfin.2011.02.007
  20. Gillan, S. L., Koch, A., & Starks, L. T. (2021, June). Firms and social responsibility: A review of ESG and CSR research in corporate finance. Journal of Corporate Finance, 66, 101889.10.1016/j.jcorpfin.2021.101889
  21. Goss, A., & Roberts, G. S. (2011). The impact of corporate social responsibility on the cost of bank loans. Journal of Banking and Finance, 35(7), 1794-1810.10.1016/j.jbankfin.2010.12.002
  22. Gupta, K. (2018). Environmental sustainability and implied cost of equity: International evidence. Journal of Business Ethics, 147(2), 343-365.10.1007/s10551-015-2971-z
  23. Herriott, S. R. (2016). Metrics for sustainable business: Measures and standards for the assessment of organizations. https://doi.org/10.4324/978131569770310.4324/9781315697703
  24. Hicks, J. R. (1946). Value and capital: An inquiry into some fundamental principles of economic theory (2nd ed.). Oxford: Clarendon Press.
  25. Hoepner, A., Oikonomou, I., Scholtens, B., & Schröder, M. (2016). The effects of corporate and country sustainability characteristics on the cost of debt: An international investigation. Journal of Business Finance and Accounting, 43(1-2), 158-190.10.1111/jbfa.12183
  26. Horváth, P., Pütter, J.M., Haldma, T., Lääts, K., Dimante, D., Dagilienė, L., ... Labaš, D. (2017). Sustainability reporting in Central and Eastern European companies: Results of an international and empirical study 11–49. In P. Horváth & J. M. Pütter (Eds.), Sustainability reporting in Central and Eastern European companies (pp. 11-49). https://doi.org/10.1007/978-3-319-52578-5_210.1007/978-3-319-52578-5_2
  27. Jo, H., & Na, H. (2012). Does CSR reduce firm risk? Evidence from controversial industry sectors. Journal of Business Ethics, 110(4), 441-456.10.1007/s10551-012-1492-2
  28. Keynes, J. M. (1936). The general theory of employment, interest and money. London: Macmillan.
  29. Lee, D. D., & Faff, R. W. (2009). Corporate sustainability performance and idiosyncratic risk: A global perspective. Financial Review, 44(2), 213-237.10.1111/j.1540-6288.2009.00216.x
  30. Lu, W., Chau, K. W., Wang, H., & Pan, W. (2014). A decade’s debate on the nexus between corporate social and corporate financial performance: A critical review of empirical studies 2002-2011. Journal of Cleaner Production, 79, 195-206.10.1016/j.jclepro.2014.04.072
  31. Lutz, F. A. (1940). The structure of interest rates. The Quarterly Journal of Economics. https://doi.org/10.2307/188166510.2307/1881665
  32. Magnanelli, B. S., & Izzo, M. F. (2017). Corporate social performance and cost of debt: The relationship. Social Responsibility Journal, 13(2), 250-265.10.1108/SRJ-06-2016-0103
  33. Modigliani, F., & Sutch, R. (1966). Innovations in interest rate policy. The American Economic Review, 56, 178-197.
  34. Novethic Research. (2013). Overview of ESG rating agencies. Retrieved from http://www.novethic.com/fileadmin/user_upload/tx_ausynovethicetudes/pdf_complets/2013_overview_ESG_rating_agencies.pdf
  35. Oikonomou, I., Brooks, C., & Pavelin, S. (2011). The effects of corporate social performance on the cost of corporate debt and credit ratings. SSRN Electronic Journal, 44. https://doi.org/10.2139/ssrn.1944164.10.2139/ssrn.1944164
  36. Peloza, J. (2009). The challenge of measuring financial impacts from investments in corporate social performance. Journal of Management, 35(6), 1518-1541.10.1177/0149206309335188
  37. Rosa La, F., Liberatore, G., Mazzi, F., & Terzani, S. (2018). The impact of corporate social performance on the cost of debt and access to debt financing for listed European non-financial firms. European Management Journal, 36(4), 519-529.
  38. Saha, R., & Kabra, K. C. (2019). Does corporate governance influence firm performance? Evidence from India. Economics and Business Review, 5(4), 70-89.10.18559/ebr.2019.4.4
  39. Sengupta, P. (1998). Corporate disclosure quality and the cost of debt. Accounting Review, 73(4), 459-474.
  40. Sharfman, M. P., & Fernando, C. S. (2008). Environmental risk management and the cost of capital. Strategic Management Journal. https://doi.org/10.1002/smj.67810.1002/smj.678
  41. Shetty, S., Sundaram, R., Achuthan, K. (2020). Assessing and comparing top accelerators in Brazil, India and USA: Through the lens of new ventures’ performance. Entrepreneurial Business and Economics Review, 8(2), 153-177. https://doi.org/10.15678/EBER.2020.08020910.15678/EBER.2020.080209
  42. Tabachnick, B. G., & Fidell, L. S. (2014). Using multivariate statistics (6th ed.). Harlow: Pearson.
  43. Thomson Reuters. (2015, August). Reuters Fundamentals Glossary, p. 952.
  44. Thomson Reuters. (2017). Thomson Reuters ESG scores. Retrieved from https://www.esade.edu/itemsweb/biblioteca/bbdd/inbbdd/archivos/Thomson_Reuters_ESG_Scores.pdf
  45. Xu, H., Wu, J., & Dao, M. (2020). Corporate social responsibility and trade credit. Review of Quantitative Finance and Accounting, 54(4), 1389-1416.10.1007/s11156-019-00829-0
  46. Ye, K., & Zhang, R. (2011). Do lenders value corporate social responsibility? Evidence from China. Journal of Business Ethics, 104(2), 197-206.10.1007/s10551-011-0898-6
DOI: https://doi.org/10.18559/ebr.2021.2.6 | Journal eISSN: 2450-0097 | Journal ISSN: 2392-1641
Language: English
Page range: 74 - 96
Submitted on: Feb 23, 2021
Accepted on: May 6, 2021
Published on: Jul 20, 2021
Published by: Poznań University of Economics and Business Press
In partnership with: Paradigm Publishing Services
Publication frequency: 4 issues per year

© 2021 Piotr Ratajczak, Grzegorz Mikołajewicz, published by Poznań University of Economics and Business Press
This work is licensed under the Creative Commons Attribution 4.0 License.