IDEAS home Printed from https://ideas.repec.org/a/taf/applec/v57y2025i11p1257-1271.html
   My bibliography  Save this article

Do corporate bond defaults affect the corporate social responsibility performance of non-defaulting industry peers? Evidence of credit risk contagion from China

Author

Listed:
  • Xuanqiao Wang
  • Lan Bo
  • Haixin Yao
  • Ning Zhang
  • Xiaoxu Zhang

Abstract

Using Chinese A-share listed firms from 2014 to 2020 as samples, this study investigates the impact of corporate bond defaults on the corporate social responsibility (CSR) performance of non-defaulting industry peers from the perspective of the credit risk contagion effect. The findings show that corporate bond defaults hinder the CSR performance of non-defaulting industry peers. The mechanism test shows that the risk contagion caused by corporate bond defaults lowers the financing and operational capabilities of peer firms, thereby weakening the CSR performance. Furthermore, the inhibitory effect of corporate bond defaults on the CSR performance of other firms in the industry is more significantly evidenced in non-state-owned enterprises, regions with a low degree of marketization, as well as firms with a high degree of financing constraints or a low degree of financing demand.

Suggested Citation

  • Xuanqiao Wang & Lan Bo & Haixin Yao & Ning Zhang & Xiaoxu Zhang, 2025. "Do corporate bond defaults affect the corporate social responsibility performance of non-defaulting industry peers? Evidence of credit risk contagion from China," Applied Economics, Taylor & Francis Journals, vol. 57(11), pages 1257-1271, March.
    • Handle: RePEc:taf:applec:v:57:y:2025:i:11:p:1257-1271
    DOI: 10.1080/00036846.2024.2311760
    as

    Download full text from publisher

    File URL: http://hdl.handle.net/10.1080/00036846.2024.2311760
    Download Restriction: Access to full text is restricted to subscribers.
    File URL: https://libkey.io/10.1080/00036846.2024.2311760?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.

    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:taf:applec:v:57:y:2025:i:11:p:1257-1271. 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/RAEC20 .

    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.