Access to Finance and Corporate Social Responsibility: Evidence from a Natural Experiment

Academy of Management Best Paper Proceedings, 2016. p. 1700-1705

7 Pages Posted: 22 Mar 2018

See all articles by Vanya Rusinova

Vanya Rusinova

Copenhagen Business School

Georg Wernicke

HEC Paris - Strategy & Business Policy

Date Written: August 1, 2016

Abstract

We provide causal evidence that investments into CSR are affected by firms’ prior financial performance. To establish causality, we make use of the exogenous variation in firm level financial constraints induced by the passage of the AJCA of 2004. We further examine the sensitivity of CSR investments to financial constraints.

Keywords: corporate social responsibility, financial constraints, financial performance, difference-in-difference, the American Jobs Creation Act (AJCA) of 2004

JEL Classification: G30, M14

Suggested Citation

Rusinova, Vanya and Wernicke, Georg, Access to Finance and Corporate Social Responsibility: Evidence from a Natural Experiment (August 1, 2016). Academy of Management Best Paper Proceedings, 2016. p. 1700-1705. Available at SSRN: https://ssrn.com/abstract=3142912

Vanya Rusinova (Contact Author)

Copenhagen Business School ( email )

Solbjerg Plads 3
Frederiksberg C, DK - 2000
Denmark

Georg Wernicke

HEC Paris - Strategy & Business Policy ( email )

Jouy-en-Josas Cedex, 78351
France

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