The Influences Of Social Responsibility Disclosure On Stock Liquidity

Corporate social responsibility information disclosure(SRD) is an important research area of corporate social responsibility study.Some researchers had studied whether SRD is meaningful to investors from different perspectives,but conclusions were not consistent.If SRD is meaningful to investors,it will change the market behavior of investors.From the perspective of liquidity,we can observe whether the market behaviors of investors are affected.Therefore the study of the SRD's impact on liquidity can provide an empirical evidence to the debate over whether corporate social responsibility information disclosure is meaningful to investors.In this paper,we use the social information disclosure index to assess the SRD level of 119 listed companies of oil,chemical and plastics industry in 2007,and adopt illiquidity ratio to represent the liquidity of these 119 companies.Then we make an exploratory research on the relationship between SRD and liquidity.Firstly,we study whether corporate social responsibility information disclosure can have an impact on liquidity;Secondly,taking into account that the companies can decide the SRD policy, we test whether the corporation management would improve the level of SRD because of pursuing better liquidity.Using linear regression analysis,we conclude that their relationship is not confirmed.From the perspective of liquidity,the value of corporate social responsibility disclosure to the investors had not been verified.This paper is organized by five chapters in all.Chapter 1 discusses briefly the purpose of the research and the background of this paper;Chapter 2 introduces the relevant theory and reviews the previous studies;Chapter 3 is about the research design.We introduce the sample selecting process,data sources and each kinds of variable's definition in detail,and propose research hypotheses of this paper. Furthermore,we establish two regression models for our empirical research.Chapter 4 analyses the empirical findings for the study.We do some empirical researches, including descriptive statistics,comparative analyses and regression analyses and explain the research conclusion.Chapter 5 gives the conclusion of this paper,makes some advices,points out the shortages of this paper.