Corporate Social Responsibility and Firm Default Risk Mitigation: The Moderating Role of the Legal Context

Responsabilité sociale des entreprises et réduction du risque de défaillance: l’effet modérateur du système juridique

Mohamad H. Shahrour, Isabelle Girerd-Potin () and Ollivier Taramasco ()
Additional contact information
Isabelle Girerd-Potin: UGA INP IAE - Grenoble Institut d'Administration des Entreprises - UGA - Université Grenoble Alpes - Grenoble INP - Institut polytechnique de Grenoble - Grenoble Institute of Technology - UGA - Université Grenoble Alpes, CERAG - Centre d'études et de recherches appliquées à la gestion - UGA - Université Grenoble Alpes
Ollivier Taramasco: UGA INP IAE - Grenoble Institut d'Administration des Entreprises - UGA - Université Grenoble Alpes - Grenoble INP - Institut polytechnique de Grenoble - Grenoble Institute of Technology - UGA - Université Grenoble Alpes, CERAG - Centre d'études et de recherches appliquées à la gestion - UGA - Université Grenoble Alpes, Grenoble INP ENSIMAG - École nationale supérieure d'informatique et de mathématiques appliquées - UGA - Université Grenoble Alpes - Grenoble INP - Institut polytechnique de Grenoble - Grenoble Institute of Technology - UGA - Université Grenoble Alpes

Post-Print from HAL

Abstract: This paper explores the impact of corporate social responsibility (CSR) on default risk in various institutional contexts. Using CSR scores and credit ratings for 1,153 firms from 45 countries, we find that CSR reduces the firm default risk level and that the effect is stronger in civil law countries, particularly German and Scandinavian law countries, than in common law countries. The environment component of CSR appears to have the highest impact on default risk. The results, which may prove useful to firms in their fight for survival, are robust using various measures and classifications.

Keywords: stakeholder-oriented; legal origins; credit ratings; firm default risk; corporate social responsibility; notations de crédits; systèmes juridiques; orientation vers les parties prenantes; risque de défaillance des entreprises; responsabilité sociale des entreprises (search for similar items in EconPapers)
Date: 2022-04-22
References: Add references at CitEc
Citations: View citations in EconPapers (2)

Published in Finance Contrôle Stratégie, 2022, 25-1 (25-1), ⟨10.4000/fcs.8844⟩

There are no downloads for this item, see the EconPapers FAQ for hints about obtaining it.

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:hal:journl:hal-03884175

DOI: 10.4000/fcs.8844

Access Statistics for this paper

More papers in Post-Print from HAL
Bibliographic data for series maintained by CCSD ().