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African firm default risk and CSR

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  • SAIDANE, Dhafer
  • ABDALLAH, Sana BEN

Abstract

As far we know this study is the first to examine the causal relationship between African firm default risk and CSR and its separate dimensions (environmental, social, and governance dimensions). Bivariate PVAR estimations results show that there is a unidirectional relationship between firm default risk and CSR as well as the environment dimension. Indeed, we note a positive and significant impact of firm stability toward CSR. Besides, our results reveal that environmental performance has a negative and significant impact on firm stability. Finally, our findings conclude that there is a virtuous circle between the governance dimension and firms' stability.

Suggested Citation

  • SAIDANE, Dhafer & ABDALLAH, Sana BEN, 2021. "African firm default risk and CSR," Finance Research Letters, Elsevier, vol. 43(C).
    • Handle: RePEc:eee:finlet:v:43:y:2021:i:c:s1544612321000453
    DOI: 10.1016/j.frl.2021.101964
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    References listed on IDEAS

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    1. Patrick Honohan & Thorsten Beck, 2007. "Making Finance Work for Africa," World Bank Publications - Books, The World Bank Group, number 6626, December.
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    Cited by:

    1. Park, Moon Deok & Han, Seung Hun, 2023. "Pay dispersion and CSR," Finance Research Letters, Elsevier, vol. 51(C).
    2. Chen, Huihui & Ho, Kung-Cheng & Zhang, Ming & Zhang, Qidi, 2023. "Effect of managerial ability toward corporate social responsibility on enterprise default risk," Finance Research Letters, Elsevier, vol. 54(C).
    3. Meles, Antonio & Salerno, Dario & Sampagnaro, Gabriele & Verdoliva, Vincenzo & Zhang, Jianing, 2023. "The influence of green innovation on default risk: Evidence from Europe," International Review of Economics & Finance, Elsevier, vol. 84(C), pages 692-710.
    4. Sana Ben Abdallah & Dhafer Saidane & Sami Ben Mim, 2024. "The impact of governance on environmental performance: evidence from African countries," Economics Bulletin, AccessEcon, vol. 44(1), pages 122-139.
    5. Wu, Dexiang & Cheng, Huihui & Luo, Cuicui & Han, Liyan, 2022. "Does government initiated corporate social responsibility lower the default risk? Evidence from the targeted poverty alleviation campaign in China," Pacific-Basin Finance Journal, Elsevier, vol. 76(C).
    6. Liu, Haiming & Chiang, Yao-Min, 2024. "Employment protection and environmental corporate social responsibility: Evidence from China," International Review of Financial Analysis, Elsevier, vol. 92(C).
    7. Helena Redondo & Elisa Aracil, 2024. "Climate‐related credit risk: Rethinking the credit risk framework," Global Policy, London School of Economics and Political Science, vol. 15(S1), pages 21-33, March.
    8. Monica Singhania & Dimple Gupta, 2024. "Impact of Environmental, Social and Governance (ESG) disclosure on firm risk: A meta‐analytical review," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 31(4), pages 3573-3613, July.

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