The Relationship Between Corporate Social Responsibility And The Cost Of Debt Financing Of The Listed Real Estate Companies

With China’s economy into a period of new normal,all industries began to change t he mode of economic development from extensive production to refinement productio n and corporate social responsibility.As a city builder,the real estate enterprises which had responsibility to accelerating pace of urbanization began to realized the significan ce of corporate social responsibility,such as using environmental protection material to provide a healthy and comfortable house,reducing the dust of construction site,ensuri ng safety in construction practice,providing urban services,paying for debt to supplies an d employees and paying tax on time,performing the public welfare charity and so on.The long-term development of enterprises needs financial support.But it is not e nough to rely on their own accumulation,most companies also need external financing that debt financing is a very important way,such as loan and issuance of bonds.Enter prises used bankloan to finance instead of bonds because China’s bond market is not perfect.Atpresent,Environmental Protection Agency and The People’s Bank of China put forward jointly the requirement of "green credit" and "green finance"that bank sh ould fully consider the social resbonsibility performance when credit investigation esp ecially protection of ecological environment.Then bank takes differential pricing to loa n which certainly increase the straitened circumstances of the enterprise loans.Based o n the current conditions of policy,this thesis will study the relationship of social resp onsibility and the cost of debt financing to give advice and suggestions for the futur e development of the listed real estate companies.First, this thesis introduced the related concepts and theories of corporate social responsibility and debt financing cost,including corporate reputation theory and inform ationasymmetry theory and so on.The second part reviewed extensive literatures about the cost of debt financing and corporate social responsibility, include concepts,ways,in turn found the reason of the relationship between them. Then this thesis analyzed cur rent status of the the listed real estate companies and used 2012-2014 the Shanghai a nd Shenzhen A-share listed real estate companies as the research samples to propose the hypothesis of the research and use descriptive statistics,correlation analysis,varianc e analysis,multiple regression analysis and other methods to test the research hypothes es.Finally,we we can get the results of the relationship of social responsibility and th e cost of debt financing and give advice and suggestions for the future development of the listed real estate companies.After analysis,we know that corporate social responsibility and the cost of debt financing have a negative correlation.When the listed real estate companies perform t he corporate social responsibility positively,they will obtain the trust of the creditors an d obtain debt capital at a lower cost. Compared to the large-scale company, small-sea le company is easier to get lower cost of debt financing by improving corporate soci al responsibility.Compared to state-holding company,non-state-owned company is not e asier to get lower cost of debt financing by improving corporate social responsibility.