Corporate Social Responsibility and Credit Ratings: On the Moderating Role of Firm Capability

Chu-Hsiung Lin, Tzu-Chuan Kao, Chang-Cheng Changchien and Chien-Hui Wu

Bulletin of Applied Economics, 2021, vol. 8, issue 2, 17-24

Abstract: This study reexamines the effects of corporate social responsibility (CSR) on credit ratings. On examining a sample of listed firms in Taiwan from 2013 to 2015, we find that our results do not support that CSR activities can enjoy more favorable credit ratings. However, firm capabilities can improve credit ratings, and the relationship between CSR and credit ratings is significant for firms with high capability. Our results indicate that CSR activities are beneficial to credit ratings only for firms with high capabilities.

Keywords: Corporate Social Responsibility; Credit Ratings; Firm Capability; Corporate Financial Performance. (search for similar items in EconPapers)
JEL-codes: G30 G32 (search for similar items in EconPapers)
Date: 2021
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Persistent link: https://EconPapers.repec.org/RePEc:rmk:rmkbae:v:8:y:2021:i:2:p:17-24

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