IDEAS home Printed from https://ideas.repec.org/a/mes/emfitr/v53y2017i7p1589-1602.html
   My bibliography  Save this article

Does Corporate Social Responsibility Affect the Cost of Bank Loans? Evidence from China

Author

Listed:
  • Jun Huang
  • Zhixin Duan
  • Guowei Zhu

Abstract

This article examines the link between corporate social responsibility (CSR) and cost of bank loans (CBL) in China. We find that there exists an inverse U-shape relationship between CSR and CBL. In addition, CSR threshold for state-owned enterprises (SOEs) is higher than for non-SOEs. In particular, CSR threshold for SOEs is lower in regions with high degree of marketization than in regions with low degree of marketization. The findings indicate that value-destroying effect occurs during CSR underinvestment phase, which is different from the overinvestment view. Moreover, the effect of CSR on CBL also depends on contextual factors such as firm ownership and marketization level.

Suggested Citation

  • Jun Huang & Zhixin Duan & Guowei Zhu, 2017. "Does Corporate Social Responsibility Affect the Cost of Bank Loans? Evidence from China," Emerging Markets Finance and Trade, Taylor & Francis Journals, vol. 53(7), pages 1589-1602, July.
    • Handle: RePEc:mes:emfitr:v:53:y:2017:i:7:p:1589-1602
    DOI: 10.1080/1540496X.2016.1179184
    as

    Download full text from publisher

    File URL: http://hdl.handle.net/10.1080/1540496X.2016.1179184
    Download Restriction: Access to full text is restricted to subscribers.
    File URL: https://libkey.io/10.1080/1540496X.2016.1179184?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Ling Huang & Haiyue Liu & Jack Hou & Fulong Xiao, 2022. "Long‐term financing effects of Chinese non‐SOEs Belt and Road OFDI," Accounting and Finance, Accounting and Finance Association of Australia and New Zealand, vol. 62(S1), pages 1819-1850, April.
    2. Justyna Zabawa & Cyprian Kozyra, 2020. "Eco-Banking in Relation to Financial Performance of the Sector—The Evidence from Poland," Sustainability, MDPI, vol. 12(6), pages 1-23, March.
    3. Zhifang Zhou & Tao Zhang & Kang Wen & Huixiang Zeng & Xiaohong Chen, 2018. "Carbon risk, cost of debt financing and the moderation effect of media attention: Evidence from Chinese companies operating in high‐carbon industries," Business Strategy and the Environment, Wiley Blackwell, vol. 27(8), pages 1131-1144, December.
    4. Ma Zhong & Rong Xu & Xinyi Liao & Shuangli Zhang, 2019. "Do CSR Ratings Converge in China? A Comparison Between RKS and Hexun Scores," Sustainability, MDPI, vol. 11(14), pages 1-20, July.
    5. Lingfu Kong & Minhas Akbar & Petra Poulova, 2023. "The Role of Environment, Social, and Governance Performance in Shaping Corporate Current and Future Value: The Case of Global Tech Leaders," Sustainability, MDPI, vol. 15(17), pages 1-14, August.
    6. Yongfeng Zhang & Peng Wang & Jongwook Kwon, 2021. "CSR in China: Does Being Close to the Central or Local Government Matter?," Sustainability, MDPI, vol. 13(16), pages 1-12, August.

    More about this item

    Statistics

    Access and download statistics

    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:mes:emfitr:v:53:y:2017:i:7:p:1589-1602. 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: Chris Longhurst (email available below). General contact details of provider: http://www.tandfonline.com/MREE20 .

    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.