Corporate social responsibility and trade credit during periods of monetary contraction
This paper studies whether firms’ corporate social responsibility (CSR) affects their access to trade credit in response to monetary contraction shocks. Based on US firm-level data from 1995Q1 to 2014Q1, we find that after monetary contraction shocks, firms with higher levels of CSR receive more tra...
| Main Authors: | , |
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| Format: | Article |
| Language: | English |
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Taylor & Francis Group
2022-12-01
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| Series: | Journal of Applied Economics |
| Subjects: | |
| Online Access: | https://www.tandfonline.com/doi/10.1080/15140326.2022.2110012 |
| _version_ | 1811337834082074624 |
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| author | Daxin Dong Peng Liu |
| author_facet | Daxin Dong Peng Liu |
| author_sort | Daxin Dong |
| collection | DOAJ |
| description | This paper studies whether firms’ corporate social responsibility (CSR) affects their access to trade credit in response to monetary contraction shocks. Based on US firm-level data from 1995Q1 to 2014Q1, we find that after monetary contraction shocks, firms with higher levels of CSR receive more trade credit than firms with lower levels of CSR. Moreover, the beneficial impact of CSR is stronger for firms in regions with higher social trust and in more competitive industries. The interpretation of the observed phenomena is that the high-CSR firms are regarded as more trustworthy. |
| first_indexed | 2024-04-13T18:01:41Z |
| format | Article |
| id | doaj.art-67b8413af3974b959415f9ced3fbe342 |
| institution | Directory Open Access Journal |
| issn | 1514-0326 1667-6726 |
| language | English |
| last_indexed | 2024-04-13T18:01:41Z |
| publishDate | 2022-12-01 |
| publisher | Taylor & Francis Group |
| record_format | Article |
| series | Journal of Applied Economics |
| spelling | doaj.art-67b8413af3974b959415f9ced3fbe3422022-12-22T02:36:14ZengTaylor & Francis GroupJournal of Applied Economics1514-03261667-67262022-12-012511127115510.1080/15140326.2022.2110012Corporate social responsibility and trade credit during periods of monetary contractionDaxin Dong0Peng Liu1Institute of Western China Economic Research, Southwestern University of Finance and Economics, Chengdu, Sichuan, ChinaDepartment of Finance, Business School, Henan University, Kaifeng, Henan, ChinaThis paper studies whether firms’ corporate social responsibility (CSR) affects their access to trade credit in response to monetary contraction shocks. Based on US firm-level data from 1995Q1 to 2014Q1, we find that after monetary contraction shocks, firms with higher levels of CSR receive more trade credit than firms with lower levels of CSR. Moreover, the beneficial impact of CSR is stronger for firms in regions with higher social trust and in more competitive industries. The interpretation of the observed phenomena is that the high-CSR firms are regarded as more trustworthy.https://www.tandfonline.com/doi/10.1080/15140326.2022.2110012Corporate social responsibilitytrustmonetary contractiontrade credit |
| spellingShingle | Daxin Dong Peng Liu Corporate social responsibility and trade credit during periods of monetary contraction Journal of Applied Economics Corporate social responsibility trust monetary contraction trade credit |
| title | Corporate social responsibility and trade credit during periods of monetary contraction |
| title_full | Corporate social responsibility and trade credit during periods of monetary contraction |
| title_fullStr | Corporate social responsibility and trade credit during periods of monetary contraction |
| title_full_unstemmed | Corporate social responsibility and trade credit during periods of monetary contraction |
| title_short | Corporate social responsibility and trade credit during periods of monetary contraction |
| title_sort | corporate social responsibility and trade credit during periods of monetary contraction |
| topic | Corporate social responsibility trust monetary contraction trade credit |
| url | https://www.tandfonline.com/doi/10.1080/15140326.2022.2110012 |
| work_keys_str_mv | AT daxindong corporatesocialresponsibilityandtradecreditduringperiodsofmonetarycontraction AT pengliu corporatesocialresponsibilityandtradecreditduringperiodsofmonetarycontraction |