Benefit corporation certification and financial performance: Capital structure matters

Asma-Arikan, Özlem and Tosun, Onur Kemal ORCID: https://orcid.org/0000-0003-2551-1408 2024. Benefit corporation certification and financial performance: Capital structure matters. European Financial Management 10.1111/eufm.12489

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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.

Item Type:	Article
Date Type:	Published Online
Status:	In Press
Schools:	Business (Including Economics)
Publisher:	Wiley
ISSN:	1354-7798
Date of First Compliant Deposit:	1 April 2024
Date of Acceptance:	1 April 2024
Last Modified:	16 Apr 2024 09:09
URI:	https://orca.cardiff.ac.uk/id/eprint/167636

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