Skip to main content

The impact of corporate social responsibility on corporate financial performance and credit ratings in Japan

Fabozzi, Frank J., Ng, Peck Wah, Tunaru, Diana (2021) The impact of corporate social responsibility on corporate financial performance and credit ratings in Japan. Journal of Asset Management, 22 (2). pp. 79-95. ISSN 1470-8272. (doi:10.1057/s41260-021-00204-6) (KAR id:87779)

PDF Author's Accepted Manuscript
Language: English
Click to download this file (624kB) Preview
[thumbnail of KAR JAM paper Revised CLEANED (1).pdf]
This file may not be suitable for users of assistive technology.
Request an accessible format
Official URL:


We investigate the impact of companies’ sustainability efforts on their corporate financial performance (CFP) and credit ratings in Japan, based on a new proxy for corporate social responsibility (CSR) − Sustainalytics’ quantitative Environment, Social and Governance (ESG) ratings. We find weak evidence of negative impact of ESG scores (on an aggregated basis and disaggregated basis) on several accounting measures of CFP. Our quantile regression results reveal non-linear pattern across the quantiles, with CSR effects intensifying at the extremal quantiles. However, we find a weak positive relationship between ESG and stock market-based measures, as well as between ESG and credit ratings. Our findings suggest that investors, credit rating agencies (CRAs) and regulators should differentiate between the three types of ESG screening as they interact and contribute in their specific way to the aggregate ESG effect.

Item Type: Article
DOI/Identification number: 10.1057/s41260-021-00204-6
Uncontrolled keywords: Corporate social responsibility; Corporate financial performance; Credit ratings; Environment, Social and Governance ratings; Quantile regression.
Subjects: H Social Sciences
Divisions: Divisions > Kent Business School - Division > Department of Accounting and Finance
Depositing User: Diana Tunaru
Date Deposited: 27 Apr 2021 10:05 UTC
Last Modified: 27 Oct 2023 13:16 UTC
Resource URI: (The current URI for this page, for reference purposes)
Tunaru, Diana:
  • Depositors only (login required):

Total unique views for this document in KAR since July 2020. For more details click on the image.