دانلود رایگان مقاله انگلیسی مسئولیت اجتماعی شرکت و بهای سرمایه گذاری - امرالد 2017

Abstract

Purpose: This study examines the link between corporate social performance (CSP) and the cost of capital of Japanese firms in 2008–2013, considering the influences of banking relationships and ownership structure. Design/methodology/approach: It examines the relation between CSP and the cost of capital in terms of the cost of debt, cost of equity, and weighted average cost of capital, using a composite CSP measure based on stakeholder relationships. A regression model is adopted, controlling for bank dependency, ownership structure, and firm-specific attributes. Findings: Institutional ownership influences the CSP–cost of equity relation and reduces the cost of equity, while CSP is perceived by debtors as not information-mitigating for the observed period. For 2008–2010, the relation between CSP and bank dependency increases the cost of debt; however, the positive influence of bank dependency on the cost of debt dilutes during 2010–2013 as the shift to a more market-oriented financial market in Japan occurs. Practical implications: Although bank borrowing is important, especially for small firms, non-financial disclosure makes external financing more flexible. Institutional investors concerned about the non-financial aspects of business therefore play an important role in mitigating the information asymmetry that exists in the capital market. Originality/value: This study extends research on the CSP–cost of capital link by considering structural changes in financial systems (e.g., capital market perception of CSP and banks as delegated monitors).

Conclusion and future research

This study explores how CSP affects the cost of capital, explicitly considering the influences of relationship banking and ownership structure on CSP when shifting from a bank-centered financial system to a more market-based system. It finds insufficient evidence of a negative link between the level of CSP and the cost of equity; however, institutional ownership has a strongly negative influence on the cost of equity by enhancing CSP. This finding implies that institutional investors perceive CSR as non-financial information that can be used to reduce agency costs in equity financing. On the contrary, this study finds that the cross-effect of CSP and bank dependency on the cost of debt is positive, which implies that debtors perceive CSR activities as cost-spending but not information-providing. Overall, the institutional ownership–CSP relation reduces WACC, implying that a changing ownership structure is influencing the market to reward CSR-related disclosure in Japan. The presented results add to the body of evidence that CSP has informational value for investors in the equity market, whereas debtors are still indifferent to CSP. This study reveals the role of institutional investors as key players disciplining corporate management in the capital market by pressing the non-financial disclosure of investee companies. Further, it confirms the conflicts related to CSR awareness between institutional investors and banks in the transitioning Japanese financial system. This study suggests that an extension to future research on CSP and the cost of capital would be to elaborate on the types of companies based on the degree of financial frictions they face. In particular, future research could investigate CSR strategies and non-financial disclosure that aim to reduce the cost of capital for different types of companies and may provide insight into the institutional reform of the financial market.