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National Stakeholder Orientation, Corporate Social Responsibility, and Bank Loan Cost

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  • Yan-Leung Cheung

    () (Hong Kong Institute of Education)

  • Weiqiang Tan

    () (Hong Kong Baptist University)

  • Wenming Wang

    () (Hong Kong Baptist University)

Abstract

Abstract Based on a sample of firms from 20 countries around the world, this study investigates how the relationship between corporate social responsibility (CSR) and bank loan pricing is affected by the degree of national stakeholder orientation. We find that firms with superior CSR performance are more likely to enjoy lower loan costs in more stakeholder-oriented countries than are their counterparts in less stakeholder-oriented countries. This study contributes to the CSR literature by highlighting the importance of national institutional environments in determining the economic consequences of CSR practices.

Suggested Citation

  • Yan-Leung Cheung & Weiqiang Tan & Wenming Wang, 2018. "National Stakeholder Orientation, Corporate Social Responsibility, and Bank Loan Cost," Journal of Business Ethics, Springer, vol. 150(2), pages 505-524, June.
  • Handle: RePEc:kap:jbuset:v:150:y:2018:i:2:d:10.1007_s10551-016-3140-8
    DOI: 10.1007/s10551-016-3140-8
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    References listed on IDEAS

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