Corporate Social Responsibility and Access toFinance

ArXiv ID: ssrn-1847085 “View on arXiv”

Authors: Unknown

Abstract

In this paper, we investigate whether superior performance on corporate social responsibility (CSR) strategies leads to better access to finance. We hypothesize

Keywords: Corporate Social Responsibility (CSR), Access to Finance, Capital Markets, ESG, Cost of Capital, Equity

Complexity vs Empirical Score

• Math Complexity: 2.0/10
• Empirical Rigor: 7.5/10
• Quadrant: Street Traders
• Why: The paper relies on standard econometric models (regressions, IV, simultaneous equations) with limited advanced mathematics, but demonstrates high empirical rigor through extensive robustness checks, multiple alternative measures, and implementation-heavy analysis using large datasets.

  flowchart TD
    A["Research Question: Does CSR Performance improve Access to Finance?"] --> B["Data & Inputs"]
    B --> C["Key Methodology"]
    B --> D["Analytical Tools"]
    C --> E["Computational Model"]
    D --> E
    E --> F["Key Outcomes/Findings"]

    subgraph B [" "]
        direction LR
        B1["Company Financial Data"] --> B2["CSR/ESG Scores"]
        B3["Market Data"] --> B2
    end

    subgraph C [" "]
        direction LR
        C1["Regression Analysis"] --> C2["Propensity Score Matching"]
    end

    subgraph D [" "]
        direction LR
        D1["Stata / R"] --> D2["Datastream / Compustat"]
    end

    subgraph E [" "]
        direction LR
        E1["Estimate Cost of Capital"] --> E2["Test Liquidity & Equity Issuance"]
    end

    subgraph F [" "]
        direction LR
        F1["Positive Correlation"] --> F2["Lower Cost of Capital"]
        F2 --> F3["Better Market Access"]
    end