Implications Of Corporate Social Responsibility On Credit Rating: A Context Of Developing Economy

Muzammal Ilyas Sindhu, Mário Nuno Mata, Muhammad Naveed, Pedro Neves Mata, Jéssica Nunes Martins, Anabela Batista Correia, João Xavier Rita

Research output: Contribution to journalArticlepeer-review


This study wants to explore the implications of corporate social responsibility on credit system rating in non-financial corporations of a developing country. Ordered probit regression model has been implementing for data analysis for a sample period of 2013-2019. This data analysis distributed in three phases, overall analysis, initial and ending analysis because of data availability. Firstly, descriptive statistics showed normality of data and correlation statistics indicated a relationship between corporate social responsibilities as independent variable, credit rating and a group of control variables. In all three phases, corporate social responsibility is significantly and positively contributing to the systematic determination of credit rating of organizations and control variables are showing some deviating results. These significant positive results of CSR on credit ratings suggest that by increasing a firm’s credit rating, investment in CSR activities is likely to increase the firm value and shareholders’ value. Credit rating agencies tend to grant moderately high appraisals to firms who appreciate the great social performance. Discoveries of this study will help administrators and also financial specialists to better comprehend the impact of CSR using a loan evaluations and credit ratings.

Original languageEnglish
Pages (from-to)1-11
Number of pages11
JournalAcademy of Strategic Management Journal
Issue numberSI 2
Publication statusPublished - 1 Jun 2021


  • Corporate Social Responsibility
  • credit rating systems
  • Credit Ratings
  • Non-financial sector
  • Ordered Probit Model


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