Does corporate social responsibility affect the cost of capital?
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Studies focusing on reporting provide evidence of a negative relation between voluntary CSR disclosures and firms' implied cost of capital and stock returns.
“Studies focusing on reporting provide evidence of a negative relation between voluntary CSR disclosures and firms’ implied cost of capital (e.g., El Ghoul et al. 2011; Plumlee et al. 2015; Matsumura et al. 2017) and stock returns (Bolton and Kacpercyk 2020b).”
From Mandatory CSR and sustainability reporting: economic analysis and literature review (2021) · cites this paper as El Ghoul et al. 2011
Several studies point to a negative association between (voluntary) CSR reporting and the cost of capital.
“Several studies point to a negative association between (voluntary) CSR reporting and the cost of capital (e.g., El Ghoul et al. 2011; Plumlee et al. 2015; Matsumura et al. 2017).”
From Mandatory CSR and sustainability reporting: economic analysis and literature review (2021) · cites this paper as El Ghoul et al. 2011
Cites
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What Matters in Corporate Governance?
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The impact of corporate social responsibility on the cost of bank loans
Goss, A., & Roberts, G. S. (2011) · Journal of Banking & Finance · doi:10.1016/j.jbankfin.2010.12.002 · Cited by 2,101 · see citing works
HAIL, L., & LEUZ, C. (2006) · Journal of Accounting Research · doi:10.1111/j.1475-679x.2006.00209.x · Cited by 1,371 · see citing works
Legal protection of investors, corporate governance, and the cost of equity capital
Chen, K. C. W., Chen, Z., & Wei, K. C. J. (2009) · Journal of Corporate Finance · doi:10.1016/j.jcorpfin.2009.01.001 · Cited by 669 · cited 9× · see citing works
“In particular, prior research suggests that firm-level corporate governance, analyst following, and financial constraints are correlated with both CSR and the cost of equity (Brown et al., 2006; Chen et al., 2009; Barnea and Rubin, 2010).”
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Sustainable investing in equilibrium
Pástor, Ľ., Stambaugh, R. F., & Taylor, L. A. (2021) · Journal of Financial Economics · doi:10.1016/j.jfineco.2020.12.011 · Cited by 2,226 · see citing works
Mandatory CSR and sustainability reporting: economic analysis and literature review
Christensen, H. B., Hail, L., & Leuz, C. (2021) · Review of Accounting Studies · doi:10.1007/s11142-021-09609-5 · Cited by 1,923 · see citing works
Environmental externalities and cost of capital
Chava, S. (2014) · Management Science · doi:10.1287/mnsc.2013.1863 · Cited by 1,851 · see citing works
The effect of pro-environmental preferences on bond prices: Evidence from green bonds
Zerbib, O. D. (2019) · Journal of Banking & Finance · doi:10.1016/j.jbankfin.2018.10.012 · Cited by 1,379 · see citing works
Voluntary environmental disclosure quality and firm value: Further evidence
Plumlee, M., Brown, D., Hayes, R. M., & Marshall, R. S. (2015) · Journal of Accounting and Public Policy · doi:10.1016/j.jaccpubpol.2015.04.004 · Cited by 1,031 · see citing works
Peer Effects of Corporate Social Responsibility
Cao, J., Liang, H., & Zhan, X. (2019) · Management Science · doi:10.1287/mnsc.2018.3100 · Cited by 573 · see citing works
Corporate environmental responsibility and the cost of capital: International evidence
El Ghoul, S., Guedhami, O., Kim, H., & Park, K. (2018) · Journal of Business Ethics · doi:10.1007/s10551-015-3005-6 · Cited by 544 · see citing works
Self-citationCorporate social responsibility and media coverage
Cahan, S. F., Chen, C., Chen, L., & Nguyen, N. H. (2015) · Journal of Banking & Finance · doi:10.1016/j.jbankfin.2015.07.004 · Cited by 365 · see citing works
Corporate social responsibility, investor protection, and cost of equity: A cross-country comparison
Breuer, W., Müller, T., Rosenbach, D., & Salzmann, A. (2018) · Journal of Banking & Finance · doi:10.1016/j.jbankfin.2018.07.018 · Cited by 350 · see citing works
Hou, T. C. (2019) · Corporate Social Responsibility and Environmental Management · doi:10.1002/csr.1647 · Cited by 290 · see citing works
Corporate Social Responsibility Reporting and Organizational Stigma: The Case of “Sin” Industries
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Making Green Stuff? Effects of Corporate Greenwashing on Consumers
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Payout policy and ESG: A European investigation
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Corporate Sustainability Disclosure and Investment Efficiency: The Saudi Arabian Context
Kouaib, A. (2022) · Sustainability · doi:10.3390/su142113984 · Cited by 39 · see citing works
Corporate Governance and Long-Run Risk Premia 
Ekponon, A. (2019) · SSRN Electronic Journal · doi:10.2139/ssrn.3440168
Corporate Governance and Long-Run Risk Premia
Ekponon, A. (2025) · SSRN Electronic Journal · doi:10.2139/ssrn.5527788
- Authors
- El Ghoul, S., Guedhami, O., Kwok, C. C. Y., & Mishra, D. R.
- Affiliations
- University of South Carolina (US)
- University of Saskatchewan (CA)
- Corresponding author
- Kwok, Chuck C.Y.
- Venue
- Journal of Banking & Finance
- Publisher
- Elsevier BV
- Published
- 2011-09
- Volume
- 35
- Issue
- 9
- Pages
- 2388-2406
- ISSN
- 0378-4266 (ISSN-L)
- OpenAlex
- W3122220309
- Cited by
- 3,465
- References
- 7
- Citations by year
- 2026: 336 · 2025: 429 · 2024: 421 · 2023: 382 · 2022: 384 · 2021: 326 · 2020: 244 · 2019: 211 · 2018: 172 · 2017: 119 · 2016: 131 · 2015: 107 · 2014: 94 · 2013: 63 · 2012: 33
- FWCI
- 98.42
- Type
- journal article
- Language
- en
- Open access
- green
- doi.org
- Locations
- Journal of Banking & Finance (publishedVersion)
- SSRN Electronic Journal (publishedVersion)
- RePEc: Research Papers in Economics (submittedVersion)
- Funders
- University of South Carolina
- Topics
- Social Sciences › Business, Management and Accounting › Strategy and Management › Corporate Social Responsibility Reporting
- Social Sciences › Business, Management and Accounting › Accounting › Corporate Finance and Governance
- Social Sciences › Business, Management and Accounting › Strategy and Management › Corporate Identity and Reputation
- Keywords
- corporate social responsibility, cost of equity, cost of capital, CSR scores, employee relations, environmental policy, product strategy, tobacco industry, nuclear power industry, business valuation
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