Study On The Effect Of Corporate Social Responsibility And Its Impact On The Cost Of Equity

With the rapid development of economy has brought great wealth of material and culture. But accompanied by the haze," red bean water" and donation fraud, product quality et al., such a series of environmental and social problems also gradually into people’s vision, negative effects are becoming sharper and sharper. Regulators have issued a draft of documents, requiring listed companies to committed social responsibility actively. In the introduction of relevant regulations and the public pay attention to the corporate social responsibility (CSR), the quantity of social responsibility report of listed companies in China presents a trend of rapid growth, and there are more companies conduct Attestation to its report.As an economic subject, Enterprise, its heart purpose is still to add profitability,and promote their own development and constantly improve their own value. Listing corporations were forced to disclosure their social responsibility information after the regulatory requirement and external pressure, and to fulfill CSR will inevitably increase the cost of current period, and the cost cannot be compensated directly. Therefore, enterprises will consider the benefits brought to fulfill CSR and disclosure non-financial information, such as whether it will be advantage of equity cost for businesses. This is also the object of this study.Aiming at Shenzhen and Shanghai A-share listed companies as the object, selected from 2011 to 2012 financial data and non-financial information as the research sample. Combined with Chinese capital market and the macro-background, using progressive layers approach, testing whether the performance of CSR did affect the equity cost, as well as independent social responsibility reporting and assurance can reduce the cost of equity capital. Positive research shows that, there was a negative correlation between social contribution value per share and equity cost; For the enterprises disclosured the independent social responsibility information, Since the independent CSR report can improve the enterprise information transparency, it is easier to raise funds, also can reduce its financing cost to a certain extent, the independent social responsibility report is negatively associated with equity capital cost. Independent attestation, has not a significantly lower effect on equity capital cost at present.The chief contribution of this study is that, in view of our capital market is still not perfect, We discusses whether the performance of CSR can be recognised by investors, as well as the social responsibility report and attestation has a strengthen influence, Aimed at supply theoretical and positive back for independent CSR report and attestation. Make contributions to improve company degree of confidence, ameliorate investment relations, conduce to the stable of security market; And also provide effective policy suggestions to regulators.