The price of corporate social irresponsibility in seasoned equity offerings: International evidence

IF 5.5 3区管理学 Q1 BUSINESS, FINANCE

British Accounting Review Pub Date : 2024-03-13 DOI:10.1016/j.bar.2024.101369

Choy Yeing (Chloe) Ho , Eliza Wu , Jing Yu

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引用次数: 0

Abstract

We examine the impact of poor corporate social responsibility engagement signalled through negative environmental and social (E&S) incidents on equity financing via seasoned equity offerings (SEOs) across 25 countries. The results show that negative E&S incidents significantly aggravate SEO underpricing, thereby increasing the cost of raising equity capital. Managers appear to take the adverse effects into consideration as reflected in the reduced likelihood of issuing equity following the experience of negative E&S incidents. Further analysis shows that such adverse pricing effects are stronger for firms that are subject to significant social and regulatory penalties for their E&S misconducts, suggesting that negative E&S incidents increase corporate reputational losses and elevate regulatory risk. Finally, there are rich cross-country variations in the SEO pricing effects of E&S risks with legal investor protection and national culture playing an important role in influencing the pricing of E&S risk.

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成熟股票发行中企业对社会不负责任的代价：国际证据

我们研究了通过负面环境和社会（E&S）事件表明的企业社会责任参与度低对 25 个国家通过季节性股票发行（SEOs）进行股权融资的影响。结果表明，负面环境和社会事件大大加剧了 SEO 定价过低的情况，从而增加了股权融资的成本。管理者似乎考虑到了不利影响，这反映在经历负面的环境和安全事件后发行股票的可能性降低。进一步的分析表明，这种不利的定价效应对于那些因其环境和健康方面的不当行为而受到重大社会和监管处罚的公司来说更为强烈，这表明负面的环境和健康事件会增加公司的声誉损失并提高监管风险。最后，在环境与安全风险的 SEO 定价效应方面存在着丰富的跨国差异，法律投资者保护和国家文化在影响环境与安全风险定价方面发挥着重要作用。

本文章由计算机程序翻译，如有差异，请以英文原文为准。

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来源期刊

British Accounting Review BUSINESS, FINANCE-

CiteScore

8.60

自引率

3.90%

发文量

审稿时长

76 days

期刊介绍： The British Accounting Review*is pleased to publish original scholarly papers across the whole spectrum of accounting and finance. The journal is eclectic and pluralistic and contributions are welcomed across a wide range of research methodologies (e.g. analytical, archival, experimental, survey and qualitative case methods) and topics (e.g. financial accounting, management accounting, finance and financial management, auditing, public sector accounting, social and environmental accounting; accounting education and accounting history), evidence from UK and non-UK sources are equally acceptable.