Effects of corporate social responsibility and governance on its credit ratings.
This study reviews the impact of corporate social responsibility (CSR) and corporate governance on its credit rating. The result of regression analysis to credit ratings with relevant primary independent variables shows that both factors have significant effects on it. As we have predicted, the signs of both regression coefficients have a positive sign (+) proving that corporates with excellent CSR and governance index (CGI) scores have higher credit ratings and vice versa. The results show nonfinancial information also may have effects on corporate credit rating. The investment on personal data protection could be an example of CSR/CGI activities which have positive effects on corporate credit ratings.
Gangdong College, Janghowon-eup, Icheon-si, Gyeonggi-do 467-900, Republic of Korea.
Dong-young
DY
Kim
Sangmyung University, 20 Hongjimun 2-gil, Jongno-gu, Seoul 110-743, Republic of Korea.
JeongYeon
0000-0002-7225-6975
J
Kim
D016494:Computer Security / Q000191:economics / Q000592:standards; D006801:Humans; D015279:Organizational Culture; D011362:Professional Corporations / Q000191:economics* / Q000592:standards*; D012941:Social Responsibility