Impact of CSR on cost of debt and cost of capital: Australian evidence

Bhuiyan, Md. Borhan Uddin; Nguyễn, Thị Hồng Nhung

doi:10.1108/srj-08-2018-0208

Cited by 75 publications

(122 citation statements)

References 51 publications

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“…Based on the regression analysis results, disclosing more CSR can reduce COE. This result was in line with researches conducted by Ahmed et al (2019); Bhuiyan & Nguyen (2019); Cuadrado-Ballesteros, Garcia-Sanchez & Martinez Ferrero (2016); Cui et al (2018); Michaels & Grüning (2017); Pusparida & Harto (2016); Suto & Takehara (2017); Xu et al (2015). Companies with better CSR performance have significantly lower COE.…”

Section: Hypothesis Analysissupporting

confidence: 89%

“…Its also shows that LEV had a significant positive effect on COE, as predicted (coefficient = 0.377, p <0.05). The higher the leverage of the companies the higher the COE (Bhuiyan & Nguyen, 2019;Cooper & Uzun, 2015;Cuadrado-Ballesteros et al, 2016;Michaels & Grüning, 2017;Xu et al, 2015). MTB and SIZE also had significant negative effect on COE (coefficient = -0.049 and -0.361, p <0.05).…”

Section: Hypothesis Analysismentioning

confidence: 97%

“…The higher the leverage the companies used, the higher the liquidity risk (Nguyen et al, 2020). Therefore, the higher the leverage will increase the companies' COE and COD (Bhuiyan & Nguyen, 2019). CHER was the amount of cash companies held.…”

Section: Whereas Coe Was Measured As Thementioning

confidence: 99%

“…Various studies have shown that companies consistently disclose complete, timely, and informative financial and nonfinancial information can take benefit in financial markets, for example, lower cost of capital (COC) and higher access to capital markets (García-Sánchez, Hussain, Martínez-Ferrero & Ruiz-Barbadillo, 2019). Results of studies on the impact of nonfinancial information disclosure on COC tend to produce various conclusions, namely the higher the level of financial information disclosure can reduce, increase, or have no effect on the cost of capital (Bhuiyan & Nguyen, 2019). However, most of the researchers seem to agree that nonfinancial information disclosure can affect risk assessment differently.…”

Section: Introductionmentioning

confidence: 99%

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Should Companies Engage In CSR? Evidence From CSR Impact On Cost Of Capital In Top Asean Companies

Prihastiwi

Fatimah

2020

JAB

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The growing concern of business's effect on social and the environment has been unprecedented. Companies must do their part as corporate citizens. Despite the rising public demand, many companies still hesitate in doing so. The purpose of this study is to give evidence that engaging in CSR activities can have an impact on the cost of capital, represented by the cost of equity (COE) and the cost of debt (COD). Using 200 companies in ASEAN during the period 2017-2019 as samples, we estimate the relationship between a company's sustainability reporting and its COE and COD. COE is measured based on an excess of return and COD is measured by interest rate. Utilizing multiple regression analysis, the findings showed that disclosure of CSR activities can help reduce COE. However, the analysis result provides no evidence regarding the relationship between sustainability reporting and COD. This study provides evidence that engaging in CSR can give benefit to companies through the reduction of COE.

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Section: Hypothesis Analysissupporting

confidence: 89%

Section: Hypothesis Analysismentioning

confidence: 97%

Section: Whereas Coe Was Measured As Thementioning

confidence: 99%

Section: Introductionmentioning

confidence: 99%

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Should Companies Engage In CSR? Evidence From CSR Impact On Cost Of Capital In Top Asean Companies

Prihastiwi

Fatimah

2020

JAB

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“…Thus, organizational engagement in environmental and social responsibility is linked to a number of valuable attitudinal and behavioral employee outcomes, evidence suggesting that organizational CSR performance enhances companies’ attractiveness for both prospective and current employees [ 2 ], leading to higher employee satisfaction and outcomes [ 3 ]. Being perceived as an environmentally and socially responsible company also leads to reduced financing costs [ 4 ], better financial performance [ 5 ] and, consequently, to higher organizational appeal for actual and potential investors. Moreover, it can increase customers’ identification with the company, their satisfaction with its products/services, as well as their loyalty to the company, these positive effects of customers’ perceptions being the most frequently emphasized in the literature [ 6 , 7 ].…”

Section: Introductionmentioning

confidence: 99%

The Impact of Environmental and Social Responsibility on Customer Loyalty: A Multigroup Analysis among Generations X and Y

Moisescu

Gică

2020

IJERPH

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The purpose of the current study was to comparatively estimate, for generation X and generation Y, the impact of corporate environmental and social responsibility on customer loyalty, via customer–company identification and customer satisfaction as mediators. For this, a survey was conducted among a sample of telecom customers, comprising 445 members of generation X, and 601 of generation Y. Data were analyzed using partial least squares structural equation modeling and multigroup analysis. Results revealed that the impact of corporate environmental responsibility on customer loyalty is significantly higher within generation Y, while the social facet of corporate responsibility is more relevant for customers from generation X. The current study contributes to the literature by developing and testing, within multiple generational groups, a theoretical model which outlines the links between environmental and social responsibility and customer outcomes. As these relationships have been scarcely analyzed in the context of age cohort membership as a moderator, our study fills an important literature gap, emphasizing significant differences between generations X and Y. The findings have relevant implications for the effective communication of corporate environmental and social responsibility activities, providing important insights on how messages and communication channels should be adapted to generations X and Y as target audiences.

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Strategic orientation, risk‐taking, corporate life cycle and environmental, social and governance (ESG) practices: Evidence from ASEAN countries

et al. 2023

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Environmental, social, and governance (ESG) considerations have become increasingly important in the business world. Companies are expected to operate responsibly and sustainably, and stakeholders are demanding greater transparency and accountability. Our research aims to examine the influence of determinants on ESG practices in ASEAN countries (Indonesia, Malaysia, Singapore, the Philippines, Thailand, and Vietnam), as measured by ESG performance on the Refinitiv Eikon. Although there have been many studies discussing ESG, only a few have discussed this relationship by involving strategic orientation, risk taking and corporate life cycle simultaneously. We use panel regression based on a sample of 2373 observations from 2004 to 2022. The results show that the prospector strategy orientation encourages a greater increase in ESG practices compared to the defender strategy orientation, which means that companies with a prospector orientation are more willing to practice ESG because they have strategic resources. The increasing risk‐taking by companies will reduce ESG practices. The more mature the company's life cycle stage will improve ESG practices. This brings implications that the strategy orientation chosen by the company, risk‐taking, and corporate life cycle are the determining factors for companies implementing ESG practices in ASEAN countries. This research contributes to the literature related to corporate sustainability by considering ESG as one of the measurements of sustainability which is currently the main investment trend being observed in financial markets, especially ASEAN countries which are the best areas to invest.

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Impact of CSR on cost of debt and cost of capital: Australian evidence

Cited by 75 publications

References 51 publications

Should Companies Engage In CSR? Evidence From CSR Impact On Cost Of Capital In Top Asean Companies

Should Companies Engage In CSR? Evidence From CSR Impact On Cost Of Capital In Top Asean Companies

The Impact of Environmental and Social Responsibility on Customer Loyalty: A Multigroup Analysis among Generations X and Y

Strategic orientation, risk‐taking, corporate life cycle and environmental, social and governance (ESG) practices: Evidence from ASEAN countries

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