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Flotation costs of seasoned equity offerings: Does corporate social responsibility matter?
,
Ping Wang
European Financial Management, Volume: 28, Issue: 3
Swansea University Author:
Zhe Li
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© 2021 The Authors. This is an open access article under the terms of the Creative Commons Attribution‐NonCommercial License
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DOI (Published version): 10.1111/eufm.12327
Abstract
This paper investigates the effect of corporate social responsibility (CSR) on flotation costs in seasoned equity offerings (SEOs). Based on an international sample covering 38 countries during the period 2002-2018, we find that CSR performance is negatively associated with SEO flotation costs, and...
| Published in: | European Financial Management |
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| ISSN: | 1354-7798 1468-036X |
| Published: |
Wiley
2021
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| Online Access: |
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| URI: | https://cronfa.swan.ac.uk/Record/cronfa57127 |
| Tags: | Add Tag |
| Abstract: |
This paper investigates the effect of corporate social responsibility (CSR) on flotation costs in seasoned equity offerings (SEOs). Based on an international sample covering 38 countries during the period 2002-2018, we find that CSR performance is negatively associated with SEO flotation costs, and this negative impact is mainly attributable to issuers' engagement in CSR, particularly in environmental and social activities. We further reveal that the CSR strategies of SEO issuers are successful in reducing market-based costs as well. Overall, this paper offers critical insights for understanding the role of stakeholder-oriented practices in adding value to shareholders through equity offerings. |
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| Keywords: |
Corporate social responsibility; flotation costs; market-based costs; seasoned equity offerings |
| College: |
Faculty of Humanities and Social Sciences |
| Funders: |
The University of Birmingham paid the OA fee. |
| Issue: |
3 |