| Summary: | 碩士 === 國立臺灣大學 === 會計學研究所 === 104 === The objective of this research is to investigate the relation between corporate social performance and credit rating and between the ownership and corporate social performance. This research includes the annual reports of the S&P 500 and Russell 3000 companies in North America, from 1992 to 2014. The empirical results show that firms with better performance in corporate social responsibility(CSR) are granted better credit rating and lower capital cost.
Also, this study investigates the relation between CSR and ownership structure. Managers may seek their private benefit and companies’ reputation by overinvestment in CSR. It causes the agency problem. This study argues that managers and institutional investors may mitigate the conflict between managers and investors while managers’ and investors’ shareholding increases. Following to past literatures, this study assumes that the better rating of CSR, the higher expenditure level of CSR. The empirical results show that the institutional and managers’ ownership is negatively related to the firm’s CSR rating. This result supports the hypothesis that the increment of institutional ownership and managers’ ownership may alleviate the conflict between managers and shareholders and mitigate the agent problem.
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