IDEAS home Printed from https://ideas.repec.org/a/mes/emfitr/v56y2020i5p1093-1112.html
   My bibliography  Save this article

The Effects of Corporate Governance on Credit Ratings: The Role of Corporate Social Responsibility

Author

Listed:
  • Cho-Min Lin
  • Clara Chia Sheng Chen
  • Sheng-Yung Yang
  • Wan-Ru Wang

Abstract

This study examines the effects of corporate governance and corporate social responsibility (CSR) on credit ratings for firms in Taiwan. We examine this causal relationship using ordered logit regressions with two-stage least-squares estimates. We document that CSR performance demonstrates both moderation and partial mediation effects in the relationship between corporate governance and credit rating. Our results indicate that a firm should practice good corporate governance and engage in CSR activities to improve its credit rating. This study further shows that family firms with strong corporate governance and good CSR performance do not benefit from higher credit ratings. However, large firms with good corporate governance practices benefit from higher credit ratings.

Suggested Citation

  • Cho-Min Lin & Clara Chia Sheng Chen & Sheng-Yung Yang & Wan-Ru Wang, 2020. "The Effects of Corporate Governance on Credit Ratings: The Role of Corporate Social Responsibility," Emerging Markets Finance and Trade, Taylor & Francis Journals, vol. 56(5), pages 1093-1112, April.
    • Handle: RePEc:mes:emfitr:v:56:y:2020:i:5:p:1093-1112
    DOI: 10.1080/1540496X.2018.1512486
    as

    Download full text from publisher

    File URL: http://hdl.handle.net/10.1080/1540496X.2018.1512486
    Download Restriction: Access to full text is restricted to subscribers.
    File URL: https://libkey.io/10.1080/1540496X.2018.1512486?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Jaspreet Kaur & Madhu Vij & Ajay Kumar Chauhan, 2023. "Signals influencing corporate credit ratings—a systematic literature review," DECISION: Official Journal of the Indian Institute of Management Calcutta, Springer;Indian Institute of Management Calcutta, vol. 50(1), pages 91-114, March.
    2. C. José García & Begoña Herrero & Francisco Morillas‐Jurado, 2024. "The impact of the environmental, social and governance dimensions of sustainability on firm risk in the hospitality and tourism industry," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 31(4), pages 2783-2800, July.
    3. Arnone, Massimo & Leogrande, Angelo & Costantiello, Alberto & Laureti, Lucio, 2024. "Banking Stability in the ESG Framework Across Italian Regions," MPRA Paper 121452, University Library of Munich, Germany.
    4. Reyes Samaniego-Medina & Pilar Giraldez-Puig, 2022. "Do Sustainability Risks Affect Credit Ratings? Evidence from European Banks," The AMFITEATRU ECONOMIC journal, Academy of Economic Studies - Bucharest, Romania, vol. 24(61), pages 720-720, August.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:mes:emfitr:v:56:y:2020:i:5:p:1093-1112. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Chris Longhurst (email available below). General contact details of provider: http://www.tandfonline.com/MREE20 .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.