Corporate Social Responsibility and TCRI Credit Rating:Evidence from the CSR Award of CommonWealth Magazine in Taiwan

• Main Authors: Ping-JuiHsieh, 謝秉叡
• Other Authors: Hsuan-Chu Lin
• Format: Others
• Language: en_US
• Published: 2013
• Online Access: http://ndltd.ncl.edu.tw/handle/93045022101041600489

碩士 === 國立成功大學 === 財務金融研究所 === 101 === This study examines corporate social responsibility (CSR) performance and its effect on credit rating. Previous research has established the relationship between corporate responsibility performance and financial performance or consumer behavior but few have shown the relation between CSR and credit rating. Using data from the CSR award of CommonWealth magazine and TCRI credit ratings conducted by Taiwan Economic Journal (TEJ) between 2007 and 2011, the evidence suggests that (i) better CSR performance is associated with better credit ratings; (ii) firms do consider the benefit and cost with different credit rating levels while making capital structure decisions. These results are consistent with our general understanding of CSR and credit rating.