African firm default risk and CSR

As far we know this study is the first to examine the causal relationship between African firm default risk and CSR and its separate dimensions (environmental, social, and governance di-mensions). Bivariate PVAR estimations results show that there is a unidirectional relationship between firm default risk and CSR as well as the environment dimension. Indeed, we note a positive and significant impact of firm stability toward CSR. Besides, our results reveal that environmental performance has a negative and significant impact on firm stability. Finally, our findings conclude that there is a virtuous circle between the governance dimension and firms' stability.