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Equity Financing and Social Responsibility: Further International Evidence

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  • Feng, Zhi-Yuan
  • Wang, Ming-Long
  • Huang, Hua-Wei

Abstract

This paper investigates how corporate social responsibility (CSR) influences the cost of equity capital from a global perspective. With a full sample of 10,803 firm-year observations from 25 countries, the study finds that, in general, firms with better CSR scores are significantly associated with a reduced cost of equity capital in North America and Europe. In contrast, the results do not continue to hold in Asian countries.

Suggested Citation

  • Feng, Zhi-Yuan & Wang, Ming-Long & Huang, Hua-Wei, 2015. "Equity Financing and Social Responsibility: Further International Evidence," The International Journal of Accounting, Elsevier, vol. 50(3), pages 247-280.
  • Handle: RePEc:eee:accoun:v:50:y:2015:i:3:p:247-280
    DOI: 10.1016/j.intacc.2015.07.005
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    References listed on IDEAS

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    Cited by:

    1. Gonenc, Halit & Scholtens, Bert, 2017. "Environmental and Financial Performance of Fossil Fuel Firms: A Closer Inspection of their Interaction," Ecological Economics, Elsevier, vol. 132(C), pages 307-328.

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