The Bond Market Benefits of Corporate Social Capital Amiraslani, Hami Lins, Karl Servaes, Henri Tamayo, Ane 2018-11-27T19:12:28Z 2018-11-27T19:12:28Z 2018-08-30
dc.description.abstract We investigate whether a firm’s social capital, and the trust that it engenders, are viewed favorably by bondholders. Using firms’ corporate social responsibility (CSR) activities to proxy for social capital, we find no relation between CSR and bond spreads over the period 2005-2013. However, during the 2008-2009 financial crisis, which represents a shock to trust and default risk, high-CSR firms benefited from lower bond spreads. These effects are stronger for firms with higher expected agency costs of debt. During the crisis, high-CSR firms were also able to raise more debt at lower spreads, better credit ratings, and longer maturities.
dc.subject CSR
dc.subject Social capital
dc.subject Trust
dc.subject Corporate bonds
dc.subject Bond spreads
dc.subject Financial crisis
dc.title The Bond Market Benefits of Corporate Social Capital
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