CORPORATE SOCIAL RESPONSIBILITY AND ITS EFFECT ON CORPORATE BOND YIELD SPREAD

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Journal ISSN
Volume Title
School of Business | Bachelor's thesis
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Author
Date
2019
Department
Rahoituksen laitos
Major/Subject
Mcode
Degree programme
Rahoitus
Language
en
Pages
22+4
Series
Abstract
This study examines whether there is a relation between Corporate social responsibility activities and U.S. corporate bond risk premium in U.S. secondary markets by analyzing a sample with a period of 2002 – 2012. The risk premium is estimated as a yield spread between corporate bond yields and U.S. Treasury yields with similar characteristics. I find that overall corporate social responsibility score is negatively associated with corporate bond yield spread and when ceteris paribus, increase of overall corporate social responsibility score by one-point results a decrease of risk premium by 4,48 basis points. Suggesting that fixed-income investors value socially responsible firm’s less risky.
Description
Thesis advisor
Joenväärä, Juha
Keywords
corporate social responsibility, CSR, corporate bond yield spread, corporate bond market
Other note
Citation
Permanent link to this item
https://urn.fi/URN:NBN:fi:aalto-201912296800
Collections
[kand] Kauppakorkeakoulu / BIZ