Social Security, Corporate Reputation And Trade Crediting Financing

In recent years, domestic enterprise' business reputation has been challenged repeatedly by the quality incidents of Shuozhou wine factory, P&G, Bright Dairy &Food and Shineway Group. Especially, Sanlu Group has been forced to declare bankruptcy due to the Melamine Tainted Milk Products Scandal. And the similar situation occurred in Mengniu Dairy Group. Mengniu Dairy Group experienced a slump in stock since the negative reputation caused by the scandal made an immediate impact with its capacity for financing in capital market. Based on these cases, it is obvious that the impact of corporate reputation is increasingly significant in the competition of capital market and a positive corporate reputation has direct connection with a greater rate of return. In this thesis, the factors which can influence a company's reputation will be explored. It can be imagined that if a company does its best to perform social responsibilities, it will help the company to attract new talented people and keep old employees. At the same time, it will deliver the company more benefits, such as the improvement of business reputation.Combining with the method of Empirical Research, this thesis will explore the relationships between Social Security, Corporate Reputation and Trade Credit Financing. Firstly, the relevant literatures about social security will be systematically presented and analyzed. Secondly, the relative theories of corporate reputation and the relationship between corporate reputation and trade credit financing will be discussed to establish a complete intellectual system. And then the hypotheses will be raised. Finally, based on the data of listed compnies in Shanghai and Shenzhen stock market from 2012 to 2014, an empirical ananlysis will be applied to investigate and explore the relationships between Social Security, Corporate Reputation and Trade Credit Financing.A conclusion has been made by regression analytical studies:(1)the high level of social security has positive corporate reputation can definitely encourage upstream and downstream investors to support the operation of the company.(2) furthermore, investors also consider company size and the development of companies as important factors.(3)a company with great social security can deliver healthy and positive signals to the public to help attract new employees and keep old employees to enhance its competitiveness. Therefore, investors boost confidence, to companies with great social security followed an advancing capability of trade credit financing.This thesis not only aim to enrich the existing articles but also look forward to provide some meaningful points to companies to help them improve internal control and protect their employees' lawful rights and interest. Further, it is also valuable to promote the improvement of relevant laws and regulations.