There are two competing theoretical views on CSReconomic determinants: agency drivenand shareholder driven. According to the agency driven view of CSR, CEOs engage in social projectsfortheirownpersonalbenefitasawaytobuildtheirreputationortoentrench themselvesinthefirm. Underashareholderdrivenview,CSR is viewedasawayto maximizeshareholderwealth. CSRisassociatedwithactiveshareholdergovernanceas opposed to a manifestation of agency problems between owners and managers.

The incentives offirms undertaking CSR couldaffect lendingdecisionsofabankand the terms of debt contracts, suchasinterest rate ofborrowing, debt covenents etc

Requirement

InthecontextofthePositiveAccountingtheoryandthestakeholdertheory, discussand analyse how theabove mentioned differentincentivesof firms undertking CSR affectbanks lendingdecisionsandtheset-upofdebtcontracts, from lenders' perspective, and then propose your own opinions. Your opinions should be built on your analys