Relationship Between Corporate Social Responsibility Disclosure And Institutional Investors Holding Preference

With the reform and opening up, China has entered in a period of rapid development, but rapid economic development has also brought many problems, a variety of social and environmental problems’exposure caused the crisis of confidence in the whole society. Business as a major force in promoting economic development, they consume social resources, also need to perform social responsibility. Then, social responsibility became the focus of people’s attention.Those corporate who perform social responsibility leave a good impression to the public, establish a corporate brand, regain the trust of the society, and this behavior which is conducive to long-term development is found by more companies, it makes more and more companies begin to practice social responsibility.Institutional investors as the largest investors of listed company, they concerned all aspects of company’s information. Foreign scholars had a long history in studying the relationship between corporate social responsibility (CSR) and institutional investor preference. In China, it is late in developing institutional investors, also did not so professional as Europe and America’s investors. Are China’s institutional investors concerned about CSR information when holding stocks? In this thesis, this problem has been studied by reading literature and empirical analysis to clarify the relationship of CSR information and institutional investors, and this research has practical significance to institutional investors and corporate social responsibility disclosure (CSRD).Firstly, we summarized literatures of CSRD and institutional investors’stock-holding preference. And we described the current status of research.Secondly, we reference related model from the literature, and combined it with this article’s characteristics. We created the model to test the effect of CSRD on institutional investors’stock-holding preference.Then, according to the needs of the model, we screened listed companies which both have holdings of institutional investors and CSRD from 2009 to 2013 as samples, using CSR rating data of Rankins (RKS) as CSRD information of listed company, using Wind (WIND) database, the holdings proportion of institutional investors and fund investors as preference data. Using multiple regression analysis methods examine the effect of the independent variable on the dependent variable.The results show:CSRD was positively correlated with institutional investors holding preferences, and also a significant positive correlation with the fund investor holding preference; institutional investors are also affected by 1-year lags of CSRD, and the fund investors affected by 2-year lags of CSRD.From the detail of CSRD, institutional investors are more concerned about the information about strategy, governance, stakeholders, financial performance, employees, environment, fair operating, consumers, community involvement as well as industry-specific information. But institutional investors do not take too much attention to standardization, innovation and information availability of CSR report. The fund investors are slightly different with institutional investors’focus, they are more concerned about the financial performance, employees, environment, fair operators, consumers and community involvement and CSR report normative, innovation, information availability and so on.Finally, we summarize the conclusions of this research and give some helpful advices, and describe the innovations and shortcomings and provide a new direction for future research.