Corporate social responsibility and capital structure: Moderating effect of culture

Cyrine Mhiri, Aymen Ajina, Nazim Hussain, Bernard Mnzava and Monika Wieczorek‐Kosmala

Corporate Social Responsibility and Environmental Management, 2025, vol. 32, issue 1, 698-717

Abstract: This paper investigates how cultural dimensions influence the relationship between corporate social responsibility (CSR) and a company's financing decisions. The study analyzes data from 780 non‐financial companies over the period 2011 to 2021. We provide strong evidence that CSR activities are negatively associated with the use of debt financing. Moreover, in cultures with high power distance, masculinity, long‐term orientation, indulgence, and uncertainty avoidance, intensified CSR efforts can reduce a firm's access to equity capital by decreasing informational asymmetry and agency costs. However, in more individualistic cultures, these cultural dimensions do not significantly affect the relationship between CSR and equity financing.

Date: 2025
References: Add references at CitEc
Citations:

Downloads: (external link)
https://doi.org/10.1002/csr.2957

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:wly:corsem:v:32:y:2025:i:1:p:698-717

Access Statistics for this article

More articles in Corporate Social Responsibility and Environmental Management from John Wiley & Sons
Bibliographic data for series maintained by Wiley Content Delivery ().