Research On The Impact Of Social Responsibility Information,Financing Constraints On Enterprise

Based on the stakeholder theory,enterprises should bear the responsibility of employees,consumers,shareholders,society and environment and so on while creating and operating profit.The traditional concern about business performance has been questioned.Nowadays more and more people began to pay attention to the implement of Corporate-Social-Responsibility,thus more and more concerned about the disclosure of social responsibility information.December 2008,China's two major stock exchanges,the Shanghai Stock Exchange and the Shenzhen Stock Exchange requirements the following four types of enterprises must disclose the social responsibility information report,namely “Shenzhen 100 Index” constituent stocks,financial category,“corporate governance index” section,both domestic and foreign listed companies.For the other enterprises,the state has adopted the principle of voluntary disclosure to encourage enterprises to disclose social responsibility information.At this stage China's capital market is not mature enough,there are serious information asymmetries and agency problems,making the listed companies are faced with serious financial constraints,which directly affect the investment decision-making and investment efficiency.It is a key point of this paper that whether or not the enterprise can improve the financing environment and increase the investment efficiency through the disclosure of the social responsibility information,establishing a good figure of the enterprise while reducing the information asymmetry and agency cost.This paper takes 291 listed companies in the A-share market of Shanghai and Shenzhen as the research object,and uses the Runling Global Social Responsibility Evaluation System to measure the fulfillment of Corporate-Social-Responsibility,Using the multivariate index measures the degree of financial constraints faced by enterprises.Richardson Model was used to quantify the investment efficiency of enterprises.After that,this paper uses multiple regression analysis to explore the relationship between the above three.Considering the relevant national policy background,our research focuses on the enterprises that belong to the heavily polluting industry.The results show that financing constraint and inefficient investment phenomenon is very common in Chinese enterprises.Enterprises disclose the social responsibility information via fulfilling Corporate-Social-Responsibility can significantly improve the efficiency of investment,especially for the mitigation of underinvestment.Disclosing CSR can inhibit over investment behavior,while the result did not pass the significance test.This may be caused by inadequate of the external supervision at this stage.The disclosure of social responsibility information can alleviate the financing constraints faced by enterprise.Financing constraint is an important way to make the disclosing of CSR influence the investment efficiency,especially in the case of underinvestment.Taking the industry factors into account,presently the role of information disclosure about CSR is particularly evident in heavily polluting industries.In the heavily polluting industries,the disclosing of CSR can effectively alleviate the financing constraints faced by enterprises,easing the lack of investment and curbing excessive investment,thereby enhance the investment efficiency of enterprises.The path effect is very obvious through research,financing constraints play a fully mediated effect.The conclusion of this paper will provide new enlightenment for improving the efficiency of Chinese enterprise's investment,meanwhile enriching the value of the implementation of social responsibility research from the perspective of financing constraints.It has played a positive role in promoting the voluntary fulfillment of social responsibility,information disclosure of social responsibility,reducing the information asymmetry.In addition to mandatory disclosure of social responsibility information in several industries,most of enterprises in our country are still in the voluntary disclosure phase.From the research focus on heavy polluting industries,we found that China should expand the scope of CSR disclosure.The government should encourage more companies to disclose social responsibility information,meanwhile increasing supervision and promote the transparent level of the capital market.Making enterprises not only to fulfill their social responsibility,but also to promote their own development.