Performance, Risk, and Cost of Capital: Trends and Opportunities for Future CSR Research

DOI

10.3390/jrfm14120586

Document Type

Journal Article

Publication Date

12-1-2021

Publication Title

Journal of Risk and Financial Management

Volume

14

Issue

12

Keywords

agency, corporate social responsibility, distress risk, financial performance, information environment, trade credit

Abstract

The information within this study reviews the financial management literature focusing on proponents and opponents of corporate social responsibility (CSR). We review how CSR affects different areas of corporate finance. This study’s core objective is to explore the last 20 years (2000–2019) of CSR top-tier literature to develop and theoretically support CSR and environmental management. Twenty years of publications provide a considerable amount of evidence on CSR’s impacts on firm financial characteristics and some paradoxical findings. The majority of our insights support the argument that doing good is good for business. This study also highlights existing gaps in the literature. Based on our findings, we highlight three areas to further explore in the context of CSR and corporate finance: (1) Does CSR improve specific information contents in stock prices? (2) Does CSR mitigate financial distress risk? and (3) Is CSR good for firm trade credit?

Open Access

Gold

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