Impact of Corporate Sustainability Strategies at the Cost of Capital of Brazilian Companies

This study explores the effect on the cost of capital in Brazilian organizations that adopted, in their business strategies, elements of Corporate Social Responsibility. The focus is on Socially Responsible Business Strategies and the cost of capital in the adoption of these strategies. The analysis was made by a regression, and as a proxy for Social Responsibility it was used the Corporate Sustainability Index. In order to estimate the cost of capital of the companies it was used the model of 3 factors of Fama and French (1993). The main results and, similarly, the main contribution of the study was the noticed that in most of the years studied, there was no significant drop in the company's cost of capital that have adopted CSR Strategies, pointing to a neutral relationship between investing in Social Responsibility and the cost of capital.