Corporate philanthropy under the CSR and its effects on access to debt financing for selected firms listed in thePhilippine Stock Exchange for the years 2008-2012

Date of Publication

2015

Document Type

Bachelor's Thesis

Degree Name

Bachelor of Science in Management of Financial Institutions

Subject Categories

Finance and Financial Management

College

Ramon V. Del Rosario College of Business

Department/Unit

Financial Management

Thesis Adviser

Denmark Alarcon

Defense Panel Member


Nohene Quiambao
April De Leon
Andrea Hontiveros
Kenneth Yumang

Abstract/Summary

The group observes the effect of corporate philanthropy to firm access to debt financing for firms in the capital markets. The hypothesis was that firms that give charitably have more access to debt financing. To that end, linear regression was employed to perform the analysis, with the leverage as the dependent variable and charitable giving as the dependent variable. Control variables used in the model were industry, industry dynamism, research and development (RD), age, size, advertising intensity, resources and return on assets (ROA). The result of the linear regression showed that corporate philantrophy does not affect the firm access to debt financing, although results from control variables showed significance. The control variables that posted significant results were size, RD and ROA. The researchers believe that size is significant because a creditor would be more willing to lend to a firm with a larger asset base. Despite the risky nature of RD, firms are still able to take out loans due to its nature as an investment. ROA is computed with total debt/total assets, having a negative impact on leverage. A lower ratio implies a larger margin for borrowing, where a firm may strategically increase borrowing. The authors recommend that further research should be conducted in the field of charitable giving, as there is a scarcity of similar studies in the Philippine setting.

Abstract Format

html

Language

English

Format

Print

Accession Number

TU21676

Shelf Location

Archives, The Learning Commons, 12F, Henry Sy Sr. Hall

Physical Description

84 leaves : illustrations (some color) ; 29 cm.

Keywords

Debt financing (Corporations)--Philippines; Social responsibility of business--Philippines

This document is currently not available here.

Share

COinS