Corporate social responsibility and trade credit

Xu, Hongkang; Wu, Jiayu; Dao, Mai

doi:10.1007/s11156-019-00829-0

Cited by 60 publications

(79 citation statements)

References 60 publications

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“…Tobin's q = (Market value of equity + Book value of Total Liability)/Total Asset. Other studies have used this variable (Wang et al , 2008; Ming-Hsiang and Chien-Pang, 2015; Qiu et al , 2016). Sales growth is the natural logarithm of sales of the current period to the previous period multiplied by 100%.…”

Section: Research Design and Methodologymentioning

confidence: 99%

Corporate social responsibility and debt financing of listed firms: a quantile regression approach

Oware

Mallikarjunappa

2021

JFRA

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Purpose The purpose of the study is to examine the effect of corporate social responsibility (CSR) on debt financing (natural logarithm of debt and leverage ratios) of listed firms. Design/methodology/approach Using content analysis for data extraction, the study examines listed firms on the Bombay Stock Exchange (BSE) from 2010 to 2019 financial year. It uses a quantile regression and panel fixed effect regression as the model's application. Findings The study shows that CSR expenditure has a positive and strong correlation with debt financing (i.e. natural logarithm of long-term and short-term debts). The first findings show that CSR expenditure has a negative and statistically significant association with total leverage ratio, using conditional mean and median percentile. However, there is a positive and statistically significant association between CSR expenditure and long-term leverage ratio at the 25th and 50th percentile. The second findings show that CSR expenditure has a positive and statistically significant association with long-term debt but an insignificant association with short-term debt and total debt under a conditional mean average. The application of quantile regression addresses the values that fall outside the confidence interval and therefore document a positive and statistically significant association between CSR expenditure and debt financing (short-term debt, long-term debt and total debt) at the 25th, 50th and 75th percentile. Originality/value The introduction of quantile regression gives a novelty in CSR and debt financing study, which to the best of the authors’ knowledge, has not received any attention. Similarly, firms have better information on how to position their CSR expenditure to attract providers of debt financing.

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Section: Research Design and Methodologymentioning

confidence: 99%

Corporate social responsibility and debt financing of listed firms: a quantile regression approach

Oware

Mallikarjunappa

2021

JFRA

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“…Following prior studies (Chen et al , 2017; Xu et al , 2020), we use the following regression model to test H1 : …”

Section: Research Design and Sample Selectionmentioning

confidence: 99%

Annual report readability and trade credit

Pham

Dao

2020

RAF

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Purpose The purpose of this study is to examine the influence of the readability of annual reports on firms’ ability to obtain trade credit from suppliers. Particularly, the authors conjecture that annual report readability helps firms obtain more trade credit from suppliers. Design/methodology/approach The authors use the Gunning Fog Index as the primary measure of annual report readability and the ratio of accounts payable to the book value of total assets as the measure of trade credit. Findings Results from the study of 4,754 firms during the 2004–2016 period indicate that suppliers extend more trade credit to firms with more readable financial reports. The authors’ results are robust to alternative measures of trade credit and annual report readability. The authors’ results remain robust when we control for firm fixed effects and potential endogeneity problems using the instrumental variable approach. A further test shows that the level of trade credit is higher for firms in business service industries, and that this relation is weakened when firms disclose less readable 10-K filings. Originality/value The authors’ findings provide new insight into the role of financial report readability in firms’ ability to obtain trade financing from suppliers. The authors’ results are also in line with the SEC’s encouragement that firms use plain English and easy language in financial reporting.

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“…They can develop (or provide an opportunity to know) a positive attitude only after learning about the company's CSR policy [22]. CSR creates a situation in which the consumer evaluates the company and the products, and attaches themselves to the company directly or indirectly [23,24]. The evaluation of the company, in turn, impacts consumer preferences.…”

Section: Introductionmentioning

confidence: 99%

CSR, Co-Creation and Green Consumer Loyalty: Are Green Banking Initiatives Important? A Moderated Mediation Approach from an Emerging Economy

et al. 2020

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The homogenization of the banking segment has made it difficult for banking institutions to practice the quality of services that are needed in order to retain consumers. Thus, these days, finding ways to increase consumer loyalty—especially green loyalty—has become a challenge for the banking industry around the planet. Research has long acknowledged that corporate social responsibility (CSR) is a strategic concern that could help organizations to increase consumer loyalty. However, the impact of CSR practices on green consumer loyalty is rarely addressed in the extant literature. Hence, the present research investigated the impact of CSR on green consumer loyalty with the mediating effect of co-creation in the banking industry of Pakistan. The study also introduced green banking initiatives as a moderator between the mediated relation of CSR and green consumer loyalty, with the intention that such a moderator would strengthen this indirect relationship. The structural equation modeling technique was used for the data analysis. The results confirm that CSR enhances consumer loyalty, and that co-creation partially mediates this relationship. Furthermore, green banking initiatives further strengthen this relation. The results of the current survey could help banking institutions learn how they can develop core strategic considerations based on the integration of CSR co-creation and green banking initiatives.

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Corporate social responsibility and trade credit

Cited by 60 publications

References 60 publications

Corporate social responsibility and debt financing of listed firms: a quantile regression approach

Corporate social responsibility and debt financing of listed firms: a quantile regression approach

Annual report readability and trade credit

CSR, Co-Creation and Green Consumer Loyalty: Are Green Banking Initiatives Important? A Moderated Mediation Approach from an Emerging Economy

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