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Broad bond rating change and irresponsible corporate social responsibility activities

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  • Chiang, Wen-Chyuan
  • Shang, Jennifer
  • Sun, Li

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.

Suggested Citation

  • Chiang, Wen-Chyuan & Shang, Jennifer & Sun, Li, 2017. "Broad bond rating change and irresponsible corporate social responsibility activities," Advances in accounting, Elsevier, vol. 39(C), pages 32-46.
    • Handle: RePEc:eee:advacc:v:39:y:2017:i:c:p:32-46
    DOI: 10.1016/j.adiac.2017.09.002
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