Corporate social responsibility and cost of financing- The importance of the international corporate governance system Articles uri icon

publication date

  • January 2020

start page

  • 207

end page

  • 234


  • 3


  • 28

International Standard Serial Number (ISSN)

  • 0964-8410

Electronic International Standard Serial Number (EISSN)

  • 1467-8683


  • Research Question/IssueOur study examines whether international corporate governance systems shape the relationship between a firm's engagement in corporate social responsibility (CSR) and their cost of financing (both equity and debt). Research Findings/InsightsUsing a large international sample, our findings reveal that although the link between CSR performance and the cost of equity is negative in a shareholder‐oriented system, this relationship is positive in a stakeholder‐oriented system. Furthermore, the link between CSR performance and the cost of debt is negative for firms that are close to default in both systems.


  • Business
  • Economics


  • corporate governance; corporate social responsibility; cost of debt; cost of equity