Does corporate social responsibility facilitate public debt financing?

Chang, X., Xu, B. ORCID: https://orcid.org/0000-0003-3512-5834 and Yang, Y. C. (2025) Does corporate social responsibility facilitate public debt financing? The Financial Review. ISSN 1540-6288 doi: 10.1111/fire.70005

Abstract/Summary

We find that firms with stronger CSR performance have a larger share of public debt in their total debt, particularly when they are subject to higher information asymmetry or greater financial constraints. Moreover, the CSR effect on public debt is weaker for firms in sin industries or low-trust regions where CSR is less likely to be viewed as a genuine commitment. Utilizing the BP oil spill event as a shock to investors’ CSR awareness, we document that the positive effect of CSR on public debt is more evident after the shock, particularly for firms outside the oil and gas industries.

Item Type	Article
URI	https://centaur.reading.ac.uk/id/eprint/123303
Identification Number/DOI	10.1111/fire.70005
Refereed	Yes
Divisions	Henley Business School > Finance and Accounting
Publisher	Wiley
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