Luo HeAssociate Professor, Accounting

John Molson School of Business, Concordia University

Le 1 fevrier 2019 | February 1, 201910 h 00 – 11 h 30

DMS 4165

We examine the impact of creditor control rights on corporate social responsibility (CSR). Employing a quasi-regression discontinuity design toexploit the discrete shift of control rights to creditors surrounding covenant violation thresholds, we document differentiated effects of creditorinfluence on various components of CSR activities: firms tend to reduce CSR activities related to employee and community welfare, while leavingspending largely intact on the components that are more likely to have long-term reputational effects on customers and investors. Furthermore, thereduction in CSR activities is concentrated in areas in which creditors’ bargaining power is stronger and agency problems in CSR activities aremore severe. Our findings highlight the active role that creditors play in shaping CSR practices.

Dr. Luo He is an associate professor in accounting at John Molson School ofBusiness, Concordia University. She received her PhD degree from Queen'sUniversity, an MBA degree from Wake Forest University (USA), and a Bachelor ofEconomics degree from Sichuan University (China). Her research interests includefinancial reporting quality and corporate governance, the effect of regulation onfinancial reporting, voluntary disclosure, and corporate social responsibility. Herwork has been published in peer-reviewed journals such as European AccountingReview, Emerging Markets Review, and Accounting Perspectives. Her researchhas received funds from provincial (FQRSC) and national (SSHRC) researchfunding agencies. She has been ranked in the Top 10% of Authors on SSRN bypaper downloads since 2017. She has taught Accounting Theory, IntermediateAccounting II, and Introductory Financial Accounting at Concordia University.

About the Speaker

CPA-AGRC Research Seminar Series

La présentation sera en anglais

Creditor Control Rights and Corporate Social Responsibility