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
Date Written: August 1, 2016
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: Suggested Citation