Corporate Social Responsibility Reporting Affecting the Cost of Capital: Empirical Evidence of Listed Companies in the Stock Exchange of Thailand

Abstract

This study aimed to investigate corporate social responsibility reporting according to the Global Reporting Initiative (GRI) through annual reports (Form 56-1), annual financial statements, and notes to financial statements, corporate social responsibility report and sustainability reports in 2016 of 220 listed companies in the Stock Exchange of Thailand using Path Analysis. The results of this study indicated that factors positively and significantly affecting corporate social responsibility reporting were total assets and liquidity. Profitability and ownership structure had a significantly negative influence on corporate social responsibility reporting. Factors that were significantly affected by the influence of corporate social responsibility reporting included leverage with a positive influence cost of debt and cost of equity with a negative influence. Market to Book and leverage influenced cost of capital. The results showed that Market to Book had a positive influence on cost of equity and leverage had a positive influence on cost of equity. Leverage had a positive influence on cost of debt.