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Corporate Social Responsibility and Maturity Mismatch of Investment and Financing: Evidence from Polluting and Non-Polluting Companies

Author

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  • Xiaolan Bao

    (College of Economics and Management, Huazhong Agricultural University, Wuhan 430070, China)

  • Qiaosheng Luo

    (College of Economics and Management, Huazhong Agricultural University, Wuhan 430070, China)

  • Sicheng Li

    (College of Economics and Management, Huazhong Agricultural University, Wuhan 430070, China)

  • M. James C. Crabbe

    (Wolfson College, Oxford University, Oxford OX2 6UD, UK
    Institute of Biomedical and Environmental Science and Technology, University of Bedfordshire, Luton LU1 3JU, UK
    School of Life Science, Shanxi University, Taiyuan 030006, China)

  • XiaoGuang Yue

    (Department of Computer Science and Engineering, School of Sciences, European University Cyprus, Nicosia 1516, Cyprus
    CIICESI, ESTG, Politécnico do Porto, 4610-156 Felgueiras, Portugal
    School of Domestic and International Business, Banking and Finance, Romanian-American University, Bucharest 012101, Romania)

Abstract

We investigate the influence of corporate social responsibility (CSR) on the maturity mismatch of investment and financing from the perspective of both polluting and non-polluting companies. The results reveal that CSR performance can aggravate the maturity mismatch of investment and financing; and the effect can be more serious in the polluting companies. At the same time, we find that CSR makes companies obtain more short-term debt. What is more, polluting companies perform more environmental responsibilities in the form of long-term investments than non-polluting companies. These phenomena exacerbate the maturity mismatch of investment and financing; and this effect is only significant when polluting companies choose CSR mandatory disclosure. The impact of CSR on the maturity mismatch of investment and financing is more apparent in companies with lower value and at smaller scales. We show that companies should not only perform their CSR to maintain a balanced economic and ecological development, but also pay attention to the aggravation of the maturity mismatch of investment and financing.

Suggested Citation

  • Xiaolan Bao & Qiaosheng Luo & Sicheng Li & M. James C. Crabbe & XiaoGuang Yue, 2020. "Corporate Social Responsibility and Maturity Mismatch of Investment and Financing: Evidence from Polluting and Non-Polluting Companies," Sustainability, MDPI, vol. 12(12), pages 1-22, June.
    • Handle: RePEc:gam:jsusta:v:12:y:2020:i:12:p:4972-:d:373196
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    References listed on IDEAS

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    Cited by:

    1. Yaowei Cao & Youtang Zhang & Liu Yang & Rita Yi Man Li & M. James C. Crabbe, 2021. "Green Credit Policy and Maturity Mismatch Risk in Polluting and Non-Polluting Companies," Sustainability, MDPI, vol. 13(7), pages 1-23, March.
    2. Li, Yanxi & Yu, Conghui & Shi, Jinyan & Liu, Yuanyuan, 2023. "How does green bond issuance affect total factor productivity? Evidence from Chinese listed enterprises," Energy Economics, Elsevier, vol. 123(C).
    3. Haiyun Ma & Deshuai Hou, 2023. "Local Government Debt and Corporate Maturity Mismatch between Investment and Financing: Evidence from China," Sustainability, MDPI, vol. 15(7), pages 1-17, April.
    4. Qianbin Feng & Lexin Zhao & Mingxue Xu, 2023. "Tax Incentives and Maturity Mismatch between Investment and Financing: Evidence from China," China & World Economy, Institute of World Economics and Politics, Chinese Academy of Social Sciences, vol. 31(4), pages 1-36, July.
    5. María Antonia García-Benau & Nicolás Gambetta & Laura Sierra-García, 2021. "Financial Risk Management and Sustainability," Sustainability, MDPI, vol. 13(15), pages 1-4, July.

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