Corporate Social Responsibility, Trade Credit and Financial Crisis

Abstract

<jats:p>Socially responsible firms receive more finance and have been well researched in the corporate finance literature. In this paper, we examine the relationship between CSR and trade credit. Using data from the US manufacturing industry, we find that CSR has a significant positive association with the buyer and supplier sides of trade credit. During the 2008–2009 financial crisis, the manufacturing industry trade badly fell. We also argue and find evidence that, during crisis, CSR is negatively associated with trade credit. These findings are robust for alternate proxies of CSR and trade credit, sample selection, and time period. Moreover, the potential endogeneity concerns do not affect our results. Finally, we show that this relationship exists for both domestic and multinational firms’ subsamples. Overall, our results indicate that firms with high social performance use more trade credit to increase their business activity.</jats:p>

Corporate Social Responsibility Rating, Corporate Governance, and Financial Distress: Evidence from China

“…(2014) also report that CSR helps Chinese firms obtain trade credit from suppliers. Saeed and Zureigat (2020) document that CSR positively affects the buyer and supplier sides of trade credit. Moreover, Farooq et al .…”

“…Zhang et al (2014) also report that CSR helps Chinese firms obtain trade credit from suppliers. Saeed and Zureigat (2020) document that CSR positively affects the buyer and supplier sides of trade credit. Moreover, Farooq et al (2021) found that Asian firms that improve their trade credit activities perform better financially.…”

Criterios ambientales, sociales y de gobierno corporativo (ESG) para empresas familiares latinoamericanas

“…El concepto de RSE ha llevado a valorar a las empresas en términos de su reputación corporativa y la continuidad de la empresa (Saeed y Zureigat, 2020). Bajo este contexto, diversas instituciones y firmas a nivel internacional han propuesto índices o matrices de datos con el objetivo de evaluar el desempeño no financiero, es decir que tan bien las empresas gestionan los riesgos y oportunidades ambientales, sociales y de gobierno corporativo.…”

“…La RSE es un elemento que favorece la reputación corporativa y garantiza la continuidad de la empresa, llegándose a convertir en un elemento que se enmarca dentro de las valoraciones crediticias con las instituciones bancarias, permitiéndoles ser acreedoras a mejores tasas de financiamiento, y por lo tanto, favoreciendo el crecimiento y la actividad económica de compañías con alto desempeño social (Saeed y Zureigat, 2020). Asimismo, como las valoraciones crediticias, las inversiones externas destinadas a la compañía se verán repercutidas de manera importante por el nivel de responsabilidad social presente en la misma; considerando de este modo criterios ambientales, sociales y de gobierno corporativo, factores que deben tenerse en cuenta a la hora de invertir en una empresa.…”

Does CSR Governance Improve Social Sustainability and Reduce the Carbon Footprint: International Evidence from the Energy Sector

“…The prior grounds show a gap between the approach to the CSR committee and actual CSR performance towards the two key pillars (environmental and social) of sustainable development [15][16][17]. We aimed to test the effect of the CSR committee in particular, on the environmental and social development.…”