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Corporate social responsibility, market rivalry and firm leverage: new evidence from a fixed-effect quantile regression approach

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  • Minh, Thanh Nguyen
  • Ngoc, Anh Mai
  • Tuan, Anh Nguyen
  • Dao, Tung Nguyen

Abstract

Previous research has employed conditional mean-focused regressions to examine the relationship between CSR and firm leverage in developed nations. By offering the first evidence in a developing country, this study employs a quantile technique to overcome the limitations of previous investigations. Our findings reveal that participation in corporate social responsibility activities has a negative and substantial influence on firm leverage at higher quantiles but no effect at lower quantiles. Our study shows that CSR spillovers on firm leverage take place through promoting employee benefits as well as improvements in the business environment.

Suggested Citation

  • Minh, Thanh Nguyen & Ngoc, Anh Mai & Tuan, Anh Nguyen & Dao, Tung Nguyen, 2022. "Corporate social responsibility, market rivalry and firm leverage: new evidence from a fixed-effect quantile regression approach," Finance Research Letters, Elsevier, vol. 47(PB).
    • Handle: RePEc:eee:finlet:v:47:y:2022:i:pb:s1544612322001064
    DOI: 10.1016/j.frl.2022.102794
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    Cited by:

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    2. Lin, Boqiang & Xie, Yongjing, 2024. "How feed-in-tariff subsidies affect renewable energy investments in China? New evidence from firm-level data," Energy, Elsevier, vol. 294(C).

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    More about this item

    Keywords

    CSR; market rivalry; firm laverage; fixed-effect quantile regression;
    All these keywords.

    JEL classification:

    • G3 - Financial Economics - - Corporate Finance and Governance
    • H2 - Public Economics - - Taxation, Subsidies, and Revenue

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