Corporate social performance, innovation intensity and their impacts on financial performance: evidence from lending decisions
- Autores: Andrés Guiral Contreras
- Localización: Notas técnicas: [continuación de Documentos de Trabajo FUNCAS], ISSN-e 1988-8767, Nº. 587, 2011
- Idioma: inglés
- Enlaces
- Dialnet Métricas: 1 Cita
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Resumen
This study examines how loan requests for intensifying Corporate Social Performance (CSP) and loan requests for increasing innovation intensity affect loan officers� credit judgments and lending decisions. I designed an experiment by manipulating the purpose of a loan request from a pharmaceutical company in order to create four alternative lending scenarios: (1) a full loan request for intensifying CSP; (2) a full loan request for increasing innovation; (3) a loan request for a balanced investment in both CSP and innovation; and (4) a general purpose loan (control group). The findings support that CSP investment is interpreted as an indicator of superior financial performance (i.e., a risk-reducing contribution). However, it was not found a clear positive relationship between innovation intensity and lending decisions. In addition, it was not found that a balanced loan request for both CSP and R&D is interpreted by loan officers as the most favorable lending scenario.
