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An Association of Corporate Social Responsibility with Credit Risk and Lending Interest Rates.
Chen, Lu Hui
Chen, Lu Hui
Corporate social responsibility
|Issue Date: ||2016-08-09 10:08:21 (UTC+8)|
With the promotion of the Equator Principles, environmental, social and governance performance of the business is becoming considerations for bank loan decisions. It shows that corporate social responsibility has been one of the factors for risk considerations. Therefore, our study uses credit rating as well as loan rates as proxies for business risk to investigate whether the CSR performance affects the risk anticipation of banks and credit rating agencies.
After controlling firm-specific and corporate governance factors, we find that: (1) A significantly positive association exits between CSR negative performance (environmental protection and safety, information announcement, other violations and the whole) and credit rating; (2) A significantly positive association also exits between CSR negative performance (other violations) and loan rates; (3) the analysis of additional tests indicates that CSR negative performance has greater effect on long-term loan rates than on short-term rates. To sum up, the CSR negative performance is one of the risk factors for banks and credit rating agencies to increase the credit rating and loan rates, simultaneously raising the financing threshold for the business.
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|Source URI: ||http://thesis.lib.nccu.edu.tw/record/#G0103353004|
|Data Type: ||thesis|
|Appears in Collections:||[會計學系] 學位論文|
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