Corporate Social Responsibility and Cost of Equity Capital : A European Perspective

Sebastian, Kevin Anthone (2013) Corporate Social Responsibility and Cost of Equity Capital : A European Perspective. [Dissertation (University of Nottingham only)] (Unpublished)

[img] PDF - Registered users only - Requires a PDF viewer such as GSview, Xpdf or Adobe Acrobat Reader
Download (1MB)

Abstract

This paper examines the effect of Corporate Social Responsibility (CSR) on the cost of equity capital (COE) for a sample of companies in the European continent. Contrary to expectation, the initial finding suggests that CSR has a positive relationship with COE. However, a more in-depth analysis reveals that for companies with above average financial performance, there is a negative relationship between CSR and COE. However, in the case of companies with below average financial performance, the study did not find any significant relationship between CSR and COE. The results also show that participation in manufacturing industry, retail trade industry and transportation, communication and electric services industry by the companies with above average financial performance results in a lower COE. On the other hand, participation in mining industry, which has a negative impact on the environment, results in a higher COE. These results are specific for the companies in the European region for the period 2005 to 2010, a period which was tainted with economic recession.

Item Type: Dissertation (University of Nottingham only)
Depositing User: EP, Services
Date Deposited: 16 Apr 2013 08:19
Last Modified: 23 Oct 2016 13:29
URI: http://eprints.nottingham.ac.uk/id/eprint/26298

Actions (Archive Staff Only)

Edit View Edit View