El Ghoul, Sadok; Guedhami, Omrane; Kwok, Chuck C.Y.; … - In: Journal of Banking & Finance 35 (2011) 9, pp. 2388-2406
We examine the effect of corporate social responsibility (CSR) on the cost of equity capital for a large sample of US firms. Using several approaches to estimate firms' ex ante cost of equity, we find that firms with better CSR scores exhibit cheaper equity financing. In particular, our findings...