Corporate Social Responsibility and Cost of Capital: An Application of Quantile Regression

• Main Authors: Yu Feng Liu, 劉于鳳
• Other Authors: Dr. George Y. Wang
• Format: Others
• Language: zh-TW
• Published: 2013
• Online Access: http://ndltd.ncl.edu.tw/handle/40439630752608648309

碩士 === 國立高雄應用科技大學 === 國際企業系碩士在職專班 === 101 === Corporate social responsibility (CSR) is referred to as a firm’s operations exceeding the standards of moral, legal, and public requirements. Furthermore, CSR is also involved with its influence on corporate stakeholders. Earlier research on CSR is mostly emphasized its relationship with firm performance or firm value. This study is the first one in an attempt to explore how CSR would impact on the cost of capital (CC) by evaluating CSR with the four dimensional model (i.e., economic, social, environmental, and governance). The method of quantile regression is introduced on the Taiwan empirical data of the publicly-listed companies. The findings of the results are as follows: First, the fulfillment of CSR could induce additional internal cost or agency cost, leading to the increase in cost of equity capital. Second, the impact of CSR on the high CC firms is greater than the impact of the low CC firms. Third, the industry effect of fulfilling CSR is significant. In particular, with regard to the fulfillment of CSR, the cost of capital in the technology industry is lower than that in the manufacturing industry.