The Relationship between Corporate Social Responsibility (CSR) Reporting and Financing(Bank Loans and Debt Securities)

A critical concern for companies is securing the necessary financial resources to conduct business operations and achieve appropriate performance. Various factors can influence a company's access to financial resources, including those that can reduce information asymmetry between the company and its creditors. Given the importance of Corporate Social Responsibility (CSR) and its significant impact on public trust in companies, the purpose of this research was to investigate the relationship between CSR reporting and financing from both the money (bank loans) and capital (debt securities) markets. The sample included 134 companies listed on the Tehran Stock Exchange (TSE) from 2014 to 2020. The results showed a positive and significant relationship between CSR reporting and the amount of financing obtained from both the capital market (through debt securities issuance) and the money market (bank loans). While past research had examined the relationship between social responsibility and debt ratio or the cost of debt, the connection between CSR and debt securities issuance had not been previously considered.