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Research Note: Corporate Social Responsibility and Equity Financing in the Global Tourism Industry

Author

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  • Zhi-Yuan Feng

    (City College, Wenzhou University, 1 Chashan University Town, Wenzhou City, Zhejiang, PR China)

  • Ming-Long Wang

    (College of Management, National Cheng Kung University, 1 University Road, Tainan City, Taiwan 701-1, ROC)

  • Hua-Wei Huang

    (College of Management, National Cheng Kung University, 1 University Road, Tainan City, Taiwan 701-1, ROC)

Abstract

This paper examines whether the performance of corporate social responsibility (CSR) affects the cost of equity capital for the tourism industry, and whether there are any regional and cultural differences in this respect. Using data from a global sample of tourism-related firms, the authors find that, on average, CSR performance is associated with a lower cost of equity for firms in Western countries, but not for firms in Asian countries. The results suggest that there are different concerns with regard to CSR investment for tourism-related firms in different regions, due to the variations in investors' perceptions, culture, institutional environment and managerial beliefs.

Suggested Citation

  • Zhi-Yuan Feng & Ming-Long Wang & Hua-Wei Huang, 2014. "Research Note: Corporate Social Responsibility and Equity Financing in the Global Tourism Industry," Tourism Economics, , vol. 20(4), pages 869-883, August.
    • Handle: RePEc:sae:toueco:v:20:y:2014:i:4:p:869-883
    DOI: 10.5367/te.2013.0313
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    References listed on IDEAS

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    6. Suzuki, Kenji & Tanimoto, Kanji, 2005. "Corporate Social Responsibility In Japan: Analyzing The Participating Companies In Global Reporting Initiative," EIJS Working Paper Series 208, Stockholm School of Economics, The European Institute of Japanese Studies.
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    Cited by:

    1. Arun Madanaguli & Shalini Srivastava & Alberto Ferraris & Amandeep Dhir, 2022. "Corporate social responsibility and sustainability in the tourism sector: A systematic literature review and future outlook," Sustainable Development, John Wiley & Sons, Ltd., vol. 30(3), pages 447-461, June.
    2. Danielle Lyssimachou & Pawel Bilinski, 2023. "Does corporate social responsibility affect the institutional ownership of firms in the hospitality and tourism industry?," Tourism Economics, , vol. 29(4), pages 853-879, June.
    3. Alatawi, Ibrahim A. & Ntim, Collins G. & Zras, Anis & Elmagrhi, Mohamed H., 2023. "CSR, financial and non-financial performance in the tourism sector: A systematic literature review and future research agenda," International Review of Financial Analysis, Elsevier, vol. 89(C).

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