Impact of corporate social responsibility on financial costs in different economic development levels: A meta-analysis approach

Corporate social responsibility (CSR) is vital in reducing financing costs. It is also a crucial component of global governance. This study is the first to examine the relationship between CSR and financing costs in developed and developing countries via a meta-analysis. It analyses 167,276 data points from empirical studies published between 2010 and 2022. The results revealed that the effect of good CSR has stronger impacts on (1) reducing financing costs in developing than developed countries; (2) the cost of equity is more significant in developed than developing countries; and (3) the cost of debt is more significant in developing than developed countries. This article studies CSR’s heterogeneous impact on financing costs under different economic development stages. It provides useful ideas to firms when they need to make financial decisions and CSR tactics to enhance sustainability.

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Impact of corporate social responsibility on financial costs in different economic development levels: A meta-analysis approach

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