الفهرس 
Research ProblemOnly 14 pages are availabe for public view
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Abstract
CSR is a growing field of study, where the researcher focused on the
different definitions of CSR, forms of CSR and dimensions of CSR showing
the importance of engaging in CSR practices in business environment along
with reviewing the contradictive thoughts of different authors regarding the
impact of CSR in business.
Different studies investigated the relation of CSR in mitigating risks
and capital constraints through decreasing information asymmetry and so
decreasing firm’s cost of capital.
The aim of the study to investigate the relation of applying CSR on the
corporate cost of capital and the mediating effect that cost of capital have on
CSR and investment decisions that managers take.
The independent variable of the study is the CSR, which is measured
using the S&P/EGX ESG index and it is considered as a dummy Variable. In
addition, the dependent variables are Cost of capital (COE and COD), which
is measured using the WACC, and the other dependent variable is the
corporate investment decisions measured using the firms’ IRR and RP. The
mediator variable of the study is the WACC as it is used in testing the relation
between CSR and investment decisions.
There is a continuous debate concerning the adoption of CSR on
corporates’ cost of capital. Many studies argued that CSR affects firms’ cost
of capital positively leading to an increase in corporate costs, conversely
others argued that CSR practices limits financial risks that a firm may face
resulting in lower costs.
Furthermore, many studies investigated the impact of CSR adoption on
investors’ perception and increasing investors’ base, but there is scarcity in
the studies that dealt with CSR implications on mangers investment decisionmaking
process inside the corporation itself.
The linkage between CSR, cost of capital and investment decisions can
be viewed as a recent and important field of study that creates a new channel
for encouraging corporations to adopt and expand their CSR practices.