Broad bond rating change and irresponsible corporate social responsibility activities

Wen-Chyuan Chiang, Jennifer Shang and Li Sun

Advances in accounting, 2017, vol. 39, issue C, 32-46

Abstract: This study investigates the association between whether firms are near a broad bond rating change (a rating with a plus or minus specification) and their level of irresponsible corporate social responsibility (CSR) activities. Using a 24-year panel sample with 1182U.S. firms and 11,335 firm-year observations, we find that firms near a broad bond rating change tend to reduce their irresponsible CSR activities more than firms that are not near a broad bond rating change. The results persist through a battery of robustness checks. Furthermore, we find that our results are stronger for high growth firms.

Keywords: Bond rating; broad bond rating change; irresponsible corporate social responsibility activities (search for similar items in EconPapers)
Date: 2017
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Citations: View citations in EconPapers (11)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:advacc:v:39:y:2017:i:c:p:32-46

DOI: 10.1016/j.adiac.2017.09.002

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