The Effects of Corporate Social Performance on the Cost of Corporate Debt and Credit Ratings

  title={The Effects of Corporate Social Performance on the Cost of Corporate Debt and Credit Ratings},
  author={Ioannis Oikonomou and Chris Brooks and Stephen. Pavelin},
  journal={ERN: Econometric Studies of Corporate Strategy},
This study investigates the differential impact that various dimensions of corporate social performance have on the pricing of corporate debt as well as the assessment of the credit quality of specific bond issues. The empirical analysis, based on an extensive longitudinal data set, suggests that overall, good performance is rewarded and corporate social transgressions are penalized through lower and higher corporate bond yield spreads, respectively. Similar conclusions can be drawn when… 

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