Title

Corporate Social Responsibility and the Cost of Debt

Authors

Elizabeth W. Cooper, La Salle UniversityFollow
Hatice Uzun, Long Island University

Document Type

Article

Publication Date

1-2015

Abstract

In this paper, we analyze the relationship between corporate social responsibility (CSR) and the cost of debt financing. Using a large sample of U.S. firms across all industries from 2006 to 2013, we find that firms with strong CSR have a lower cost of debt. This is especially evident in the manufacturing and financial industries. Further, we analyze the impact of managerial ownership on the CSR/cost of debt relationship. Practically speaking, to reduce the cost of debt financing our results suggest that it would be beneficial for firms to strengthen involvement and engagement in CSR activities.

Language

English

Comments

This article is the authors' final published version in Journal of Accounting and Finance, Volume 15, Issue 8, January 2015, Pages 11-29.

The published version is available at http://t.www.na-businesspress.com/JAF/CooperEW_Web15_8_.pdf. Copyright © North American Business Press

Recommended Citation

Cooper, Elizabeth W. and Uzun, Hatice, "Corporate Social Responsibility and the Cost of Debt" (2015). Department of Finance. 11.
https://digitalcommons.lasalle.edu/finance/11