Rethinking capital structure decision and corporate social responsibility in response to COVID-19

Huang, He, and Ye, Ye (2021) Rethinking capital structure decision and corporate social responsibility in response to COVID-19. Accounting and Finance, 61 (3). pp. 4757-4788.

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Restricted to Repository staff only until 7 January 2023.

View at Publisher Website: https://doi.org/10.1111/acfi.12740
 
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Abstract

COVID-19 has severely constricted the global economic activities. This paper examines the joint effect of capital structure and corporate social responsibility (CSR) activities on firm risk during COVID-19. We find that firms having excessive debt beyond the optimal level experienced high firm risk during the pandemic and the effect is more prevalent among firms with poor CSR performance. In contrast, firms with a debt level below the optimum are self-protected regardless of their CSR practices. Our study provides businesses with insights of post-pandemic directions on capital structure and CSR policies to build up sustainability and resilience in a volatile market.

Item ID: 65286
Item Type: Article (Research - C1)
ISSN: 1467-629X
Keywords: COVID-19, Capital structure, Financial risk, CSR, Corporate Social Responsibility
Copyright Information: © 2021 Accounting and Finance Association of Australia and New Zealand. The Author Accepted Manuscript of this paper is available Open Access from ResearchOnline@JCU from 7 January 2023, and may be used for non-commercial purposes in accordance with Wiley Terms and Conditions for Use of Self-Archived Versions.
Date Deposited: 09 Dec 2020 04:39
FoR Codes: 35 COMMERCE, MANAGEMENT, TOURISM AND SERVICES > 3507 Strategy, management and organisational behaviour > 350702 Corporate social responsibility @ 70%
35 COMMERCE, MANAGEMENT, TOURISM AND SERVICES > 3507 Strategy, management and organisational behaviour > 350701 Corporate governance @ 30%
SEO Codes: 91 ECONOMIC FRAMEWORK > 9102 Microeconomics > 910205 Industry Policy @ 50%
91 ECONOMIC FRAMEWORK > 9101 Macroeconomics > 910109 Savings and Investments @ 50%
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