Effects of corporate social responsibility and governance on its credit ratings

ScientificWorldJournal. 2014:2014:305452. doi: 10.1155/2014/305452. Epub 2014 Oct 27.

Abstract

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.

Publication types

  • Research Support, Non-U.S. Gov't
  • Review

MeSH terms

  • Computer Security / economics
  • Computer Security / standards
  • Humans
  • Organizational Culture*
  • Professional Corporations / economics*
  • Professional Corporations / standards*
  • Social Responsibility*