全球智库信息集成服务系统(G2TT): DP12321 A Matter of Trust? The Bond Market Benefits of Corporate Social Capital during the Financial Crisis

G2TT

来源类型	Discussion paper
规范类型	论文
来源ID	DP12321
	DP12321 A Matter of Trust? The Bond Market Benefits of Corporate Social Capital during the Financial Crisis
	Henri Servaes; Karl Lins; Ane Tamayo
发表日期	2017-09-21
出版年	2017
语种	英语
摘要	We investigate whether a firm’s social capital, and the trust that it engenders, are viewed favorably by bondholders. Using the financial crisis as an exogenous shock to trust, and firms’ corporate social responsibility (CSR) activities as a proxy for social capital, we show that high-CSR firms benefited from lower bond spreads in the secondary market during the financial crisis compared to low-CSR firms. These findings are more pronounced for firms that, when in distress, have a greater opportunity to engage in asset substitution or divert cash to shareholders. High-CSR firms were also able to raise more debt capital on the primary market during this period, and those high-CSR firms that raised more debt were able to do so at lower at-issue bond spreads, better initial credit ratings, and for longer maturities. Our results suggest that debt investors believe that high-CSR firms are less likely to engage in asset substitution and diversion that would be detrimental to stakeholders, including debtholders. These findings also indicate that the benefits of CSR that accrued to shareholders during the financial crisis carry across to another important asset class, debt capital.
主题	Financial Economics
关键词	Csr Social capital Trust Cost of debt Financial crisis Corporate bonds
URL	https://cepr.org/publications/dp12321
来源智库	Centre for Economic Policy Research (United Kingdom)
资源类型	智库出版物
条目标识符	http://119.78.100.153/handle/2XGU8XDN/541131
推荐引用方式 GB/T 7714	Henri Servaes,Karl Lins,Ane Tamayo. DP12321 A Matter of Trust? The Bond Market Benefits of Corporate Social Capital during the Financial Crisis. 2017.