The Effect Of Corporate Social Responsibility Disclosure On Investor Confidence

Currently,some enterprises merely pursue economic interest and ignore corporate social responsibility,causing social events that bring in severe social impact.Corporate social responsibility has gradually become a hot topic in academic circles.Since 2006,Chinese regulators in capital market have issues several guidelines to demand and encourage listed companies to release social responsibility report.The number of listed companies reporting social responsibility increased from 32 in 2006 to 851 in 2016,but still less than 30%of all the listed companies.Meanwhile,the disclosed social responsibility reports varies considerably in quality,reflecting the lack of sufficient attention to the corporate social responsibility.Few of the existing research pay attention to the impact of the quality of social responsibility disclosure on investor confidence.In fact,investors are not only concerned with the company's financial imformation,but also the non-financial information.Corporate social responsibility as an important tool of non-financial information,the disclosure quality may have a direct impact on investor confidence.In this paper,we discuss the main effect of corporate social responsibility disclosure on investor confidence.Firstly,we summarized previous research on corporate social responsibility and investor confidence in a detailed literature review.Then,based on the information asymmetry theory,signal theory and stakeholder theory,we put forward the hypothesis of this article.Using the listed companies reporting corporate social responsibility as the samples,we discussed the relationship between the quality of corporate social responsibility disclosure and investor confidence,and the moderating effect of financial constraints and corporate governance on the main effect.Through the empirical research,this paper draws the following conclusions:(1)the quality of corporate social responsibility disclosure and investor confidence is positively related;(2)financial constraints positively moderating the quality of corporate social responsibility disclosure and investor confidence;(3)board members'ownership positively moderates the quality of corporate social responsibility disclosure and investor confidence.As to the board size and the ownership of the largest shareholder,the moderating effect is not significant.Therefore,we put forward some suggestions:enterprise regulators should address the significance of the corporate social responsibility and improve the quality of the corporate social responsibility report.At the same time,the implementation of social responsibility is not merely a matter of state-owned enterprises,for the small and medium enterprises that generally facing financial constraints,the implementation of social responsibility can bring a better market response.Finally,improve the corporate governance structure and the quality of corporate governance can better promote the value of corporate social responsibility.