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Is CSR the key to unlocking debt financing during COVID-19? A multicountry perspective

Author

Listed:
  • Jagriti Srivastava

    (Indian Institute of Management Kozhikode)

  • Aravind Sampath

    (Indian Institute of Management Kozhikode)

  • Balagopal Gopalakrishnan

    (Indian Institute of Management Kozhikode)

Abstract

In this study, we examine whether CSR engagement impacts the debt financing obtained by firms across the world. We find that firms with greater stakeholder engagement obtain higher debt financing during the COVID-19 pandemic period. The effect is more pronounced for less creditworthy firms, highlighting the importance of maintaining relationships with stakeholders. The positive association of CSR on debt financing during the pandemic period is higher for larger firms, asset-intensive firms, and firms from the developed markets. Our empirical analysis reinforces the importance of firms’ stakeholder engagement to mitigate the adverse impact of economic shocks.

Suggested Citation

  • Jagriti Srivastava & Aravind Sampath & Balagopal Gopalakrishnan, 2021. "Is CSR the key to unlocking debt financing during COVID-19? A multicountry perspective," Working papers 481, Indian Institute of Management Kozhikode.
    • Handle: RePEc:iik:wpaper:481
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    More about this item

    Keywords

    CSR; ESG; Stakeholder; COVID-19; Debt financing JEL classification: G01; G21; G32; H12; M14;
    All these keywords.

    JEL classification:

    • G01 - Financial Economics - - General - - - Financial Crises
    • G21 - Financial Economics - - Financial Institutions and Services - - - Banks; Other Depository Institutions; Micro Finance Institutions; Mortgages
    • G32 - Financial Economics - - Corporate Finance and Governance - - - Financing Policy; Financial Risk and Risk Management; Capital and Ownership Structure; Value of Firms; Goodwill
    • H12 - Public Economics - - Structure and Scope of Government - - - Crisis Management
    • M14 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - Corporate Culture; Diversity; Social Responsibility

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