The empirical relationship between corporate social responsibility (CSR) disclosure and the cost of equity is conflicting. Various corporate governance mechanisms may moderate this relationship. However, the moderating effect of foreign ownership - a key corporate governance mechanism in many emerging countries – has not yet been examined. Our research fills this gap by analyzing a large sample of Vietnamese listed firms for the period of 2008-2013. We find that although CSR disclosure does not directly affect the cost of equity, foreign ownership plays an important moderating role by reducing the cost of equity. We also analyze state ownership and find that it neither strengthens nor weakens the relationship between CSR and the cost of equity.
|Publication status||Published - 10 Nov 2017|
|Event||International Conference "CSR, the Economy and Financial Markets" 2017 - Development Bank of Japan, Tokyo, Japan|
Duration: 11 Oct 2017 → 11 Oct 2017
|Conference||International Conference "CSR, the Economy and Financial Markets" 2017|
|Period||11/10/17 → 11/10/17|
- Corporate social responsibility, cost of equity, ownership, emerging countries.
Kabir, R., & Thái Minh, H. (2017). The Effect of Corporate Social Responsibility Disclosure on the Cost of Equity of Firms and the Moderating Role of Ownership. 1-27. Paper presented at International Conference "CSR, the Economy and Financial Markets" 2017, Tokyo, Japan.