Flotation costs of seasoned equity offerings: Does corporate social responsibility matter?

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Flotation costs of seasoned equity offerings: Does corporate social responsibility matter? / Li, Zhe; Wang, Ping.

In: European Financial Management, 15.06.2021.

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@article{4f38146fedfc4d1dbf83810ce7c46377,
title = "Flotation costs of seasoned equity offerings: Does corporate social responsibility matter?",
abstract = "This paper investigates the effect of corporate social responsibility (CSR) on flotation costs in seasoned equity offerings (SEOs). On the basis of 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.",
keywords = "corporate social responsibility, flotation costs, market-based costs, seasoned equity offerings",
author = "Zhe Li and Ping Wang",
year = "2021",
month = jun,
day = "15",
doi = "10.1111/eufm.12327",
language = "English",
journal = "European Financial Management",
issn = "1354-7798",
publisher = "Wiley",

}

RIS

TY - JOUR

T1 - Flotation costs of seasoned equity offerings: Does corporate social responsibility matter?

AU - Li, Zhe

AU - Wang, Ping

PY - 2021/6/15

Y1 - 2021/6/15

N2 - This paper investigates the effect of corporate social responsibility (CSR) on flotation costs in seasoned equity offerings (SEOs). On the basis of 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.

AB - This paper investigates the effect of corporate social responsibility (CSR) on flotation costs in seasoned equity offerings (SEOs). On the basis of 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.

KW - corporate social responsibility

KW - flotation costs

KW - market-based costs

KW - seasoned equity offerings

U2 - 10.1111/eufm.12327

DO - 10.1111/eufm.12327

M3 - Article

JO - European Financial Management

JF - European Financial Management

SN - 1354-7798

ER -