IDEAS home Printed from https://ideas.repec.org/a/bba/j00001/v3y2024i2p65-80d177.html
   My bibliography  Save this article

Corporate social responsibility and the likelihood of external financing

Author

Listed:
  • Shahbaz Sheikh

    (DAN Department of Management & Organizational Studies, The University of Western Ontario, London, Canada)

Abstract

This paper empirically investigates the relation between firm performance in corporate social responsibility (CSR) and the need and likelihood of external financing to test the predictions of agency and stakeholder theories. Empirical results from Logit, Linear Probability Model, OLS and Firm fixed effects regressions indicate that CSR is negatively related to the likelihood and level of external financing. Further analysis indicates that CSR has a negative and significant effect on both net equity issued (NEI) and net debt issued (NDI), the two components of external financing. Overall, the empirical results support the predictions of agency theory.

Suggested Citation

  • Shahbaz Sheikh, 2024. "Corporate social responsibility and the likelihood of external financing," Journal of Economic Analysis, Anser Press, vol. 3(2), pages 65-80, June.
    • Handle: RePEc:bba:j00001:v:3:y:2024:i:2:p:65-80:d:177
    as

    Download full text from publisher

    File URL: https://www.anserpress.org/journal/jea/3/2/57/pdf
    Download Restriction: no
    File URL: https://www.anserpress.org/journal/jea/3/2/57
    Download Restriction: no
    ---><---

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:bba:j00001:v:3:y:2024:i:2:p:65-80:d:177. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Ramona Wang (email available below). General contact details of provider: https://www.anserpress.org .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.