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Corporate Social Responsibility, Bank Deregulation, Product Market Competition, Financial Stability, Price Stability, Fragile Five, Schwartz Hypothesis
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Full-Text Articles in Business
Credit Supply, Price And Financial Stability In Markets And Institutions, Austin J. Dejan
Credit Supply, Price And Financial Stability In Markets And Institutions, Austin J. Dejan
University of New Orleans Theses and Dissertations
In Chapter 1, the staggered nature of the adoption of interstate bank branching deregulation in the United States is utilized as an exogeneous shock to investigate the managerial incentives involved in corporate socially responsible (CSR) activities. Using Kinder, Lydenberg, and Domini Research & Analytics, Inc. for our CSR measures, we find a significant negative relation between the extent of deregulation and CSR practices, which implies that deregulation-led rising competition in product market makes the non-financial firms more concerned about protecting interests of shareholders than other stakeholders. Specifically, firms with low pricing power tend to significantly reduce their CSR activities. Our …