Does Corporate Social Responsibility Facilitate Public Debt Financing?

Chang, Xin, Xu, Bin and Yang, Yung Chiang ORCID: 0000-0002-5844-4515 (2025) Does Corporate Social Responsibility Facilitate Public Debt Financing? FINANCIAL REVIEW, 60 (4). pp. 1457-1481. ISSN 0732-8516, 1540-6288

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Abstract

We find that firms with stronger corporate social responsibility (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
Additional Information:	Source info: Nanyang Business School Research Paper No. 24-09
Uncontrolled Keywords:	bank debt, corporate social responsibility, debt structure, public debt
Divisions:	Faculty of Humanities & Social Sciences Faculty of Humanities & Social Sciences > School of Management
Depositing User:	Symplectic Admin
Date Deposited:	18 Jun 2025 07:17
Last Modified:	16 Jun 2026 20:07
DOI:	10.1111/fire.70005
Related Websites:	Author Publisher
URI:	https://livrepository.liverpool.ac.uk/id/eprint/3193282
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