Asma‐Arikan, Ö orcid.org/0000-0002-1916-2013 and Tosun, O.K. orcid.org/0000-0003-2551-1408 (2024) Benefit corporation certification and financial performance: Capital structure matters. European Financial Management, 30 (5). pp. 2880-2913. ISSN 1354-7798
Abstract
We are examining the impact of benefit corporation certification on the profitability of UK companies, taking into account their capital structure. We contribute to the literature that scrutinizes the financial ramifications of Benefit Corporation Certification. Analyzing UK Certified Benefit Corporations (CBCs) and their noncertified counterparts using a difference-in-differences analysis, we find that the performance of CBCs with a capital structure heavily weighted towards debt declines in comparison to non-CBCs, using Return on Assets as a measure of financial performance. Conversely, the performance of CBCs with a capital structure primarily composed of equity is comparable to that of non-CBCs.
Metadata
Item Type: | Article |
---|---|
Authors/Creators: |
|
Copyright, Publisher and Additional Information: | © 2024 The Authors. European Financial Management published by John Wiley & Sons Ltd. This is an open access article under the terms of the Creative Commons Attribution License (http://creativecommons.org/licenses/by/4.0/), which permits use, distribution and reproduction in any medium, provided the original work is properly cited. |
Keywords: | capital structure; Certified Benefit Corporations; equity financing; firm performance |
Dates: |
|
Institution: | The University of Sheffield |
Academic Units: | The University of Sheffield > Faculty of Social Sciences (Sheffield) > Management School (Sheffield) |
Depositing User: | Symplectic Sheffield |
Date Deposited: | 22 Apr 2024 14:58 |
Last Modified: | 15 Nov 2024 16:10 |
Status: | Published |
Publisher: | Wiley |
Refereed: | Yes |
Identification Number: | 10.1111/eufm.12489 |
Open Archives Initiative ID (OAI ID): | oai:eprints.whiterose.ac.uk:211705 |