Constraints on “Doing Good”: Financial constraints and corporate social responsibility

Chee Kian Leong and Yung Chiang Yang

Finance Research Letters, 2021, vol. 40, issue C

Abstract: Using a propensity score matched sample of firms, we find that financially constrained firms have significantly higher CSR concerns, which significantly impairs their overall CSR performance. Firms facing financial constraints may prioritize by strengthening their CSR performance in employee relations, corporate governance and the environment. Despite such prioritization, financial constraints significantly impair overall CSR performance in all CSR dimensions, except human rights.

Keywords: Propensity score matching; Financial constraints; Corporate social responsibility (search for similar items in EconPapers)
JEL-codes: D22 L21 (search for similar items in EconPapers)
Date: 2021
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (6)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:finlet:v:40:y:2021:i:c:s1544612320308485

DOI: 10.1016/j.frl.2020.101694

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