THE Companies Participating in the Corporate Sustainability Index and the Restrictive Financial Debt Clauses
DOI:
https://doi.org/10.22478/ufpb.2318-1001.2021v9n1.52732Abstract
Objective: The research aims to analyze whether Brazilian companies included in the BM&FBOVESPA Corporate Sustainability Index are more likely to have restrictive financial clauses in debt contracts.
Rationale: Corporate social responsibility is correlated with the financial performance of companies as they are associated with profitability and indebtedness (Cochran & Wood, 2017), where companies included in the BM&FBOVESPA Corporate Sustainability Index have less restrictions on financing and less short-term bank debt. (Andrade, Bressan, Iquaipaza & Moreira, 2012) and, companies with long-term bank debt concentration are more susceptible to restrictive financial clauses (Silva, 2008).
Method: The sample consisted of 1,550 unbalanced panel observations for 233 publicly-traded Brazilian non-financial companies in the period from 2010 to 2018, with data taken from the Economática database, BM&FBOVESPA website and explanatory notes from the companies. Mean tests, Pearson correlation and MQO linear regression analysis were used through the logit controlling model per year.
Results: It was observed that companies included in the BM&FBOVESPA Corporate Sustainability Index are more likely to have restrictive financial clauses in their bank debt contracts, validating the research hypothesis.
Contributions: The evidence complement the literature on corporate social responsibility by relating to factors that inhibit risks in financial operations and assisting companies included in the Corporate Sustainability Index to plead with financial institutions not to include restrictive financial clauses in fundraising.
Downloads
Published
Issue
Section
License
Autores que publicam na RECFin concordam com os seguintes termos:- Autores mantém os direitos autorais e concedem à revista o direito de primeira publicação, com o trabalho simultaneamente licenciado sob a Licença Creative Commons Attribution que permite o compartilhamento do trabalho com reconhecimento da autoria e publicação inicial nesta revista;
- Em virtude de aparecerem nesta revista de acesso público, os artigos são de uso gratuito, com atribuições próprias, em aplicações educacionais e não-comerciais;
- A revista permitirá o uso dos trabalhos publicados para fins não-comerciais, incluindo direito de enviar o trabalho para bases de dados de acesso público.
