Do Markets Punish or Reward Corporate Social Responsibility Decoupling?

Isabel-María García-Sánchez, Nazim Hussain, Sana Akbar Khan, Jennifer Martínez-Ferrero*

*Bijbehorende auteur voor dit werk

OnderzoeksoutputAcademicpeer review

38 Citaten (Scopus)
610 Downloads (Pure)


This article analyzes the relationship between corporate social responsibility (CSR) decoupling and financial market outcomes. CSR decoupling refers to the gap between CSR disclosure and CSR performance. More specifically, we analyze the effect of CSR decoupling on analysts’ forecast errors, cost of capital, and access to finance. We also examine the moderating effect of forecast errors on relationships between CSR decoupling and cost of capital and access to finance. For a sample of U.S. firms consisting of 7,681 firm-year observations for the period 2006–2015, our empirical evidence supports the idea that a wider gap results in higher analysts’ forecast errors, a greater cost of capital, and reduced access to finance. In addition, our results show that forecast errors enhance the effect of the CSR decoupling on cost of capital and access to financial resources. We also note that external monitoring, in the form of greater analysts’ coverage, reduces CSR decoupling.
Originele taal-2English
Pagina's (van-tot)1431-1467
Aantal pagina's37
TijdschriftBusiness & Society
Nummer van het tijdschrift6
Vroegere onlinedatum10-jan.-2020
StatusPublished - 2021

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