Corporate Social Responsibility,Institutional Characteristics And Financing Constraints

At present,how to reduce the financing constraints is the key to determine the future development of the enterprise.The factors affecting the financing constraints have been widely concerned by the researchers.As an important field in sociology and economics research,corporate social responsibility is necessary for enterprises to realize sustainable development.It is conceivable that corporate social responsibility will have a positive impact on corporate financing decisions.In recent years,the research of the relationship between corporate social responsibility and financing constraints is less.And there is no deep research on the interactive relationship between corporate social responsibility,institutional characteristics and financing constraints.Therefore,this study will analyze the internal mechanism of corporate social responsibility impacting financing from the perspective of institutional characteristics.This paper reviews and summarizes the relevant literatures.Based on institutional theory,the stakeholders theory,cash flow theory,asymmetric information theory and principal-agent theory,by introducing cross-multiplication to the cash-cash flow sensitivity model,this study examines the impact of corporate social responsibility on financing constraints.At the same time,the formal institution--the marketization process and the informal institution--political connection have be included in the research framework and the effect of different nature of property rights also has be taken into account.Through the analysis of the 3342 sample data of Shanghai Stock Exchange and Shenzhen Stock Exchange A-shares in 2011-2016,the empirical results show that:(1)There are generally financing constraints in listed companies in China,and corporate social responsibility can significantly alleviate the financing constraints faced by enterprises.(2)Compared with state-owned enterprises,non-state-owned enterprises are faced with stronger financing constraints,and corporate social responsibility is more significant in non-state-owned enterprises.(3)The financing constraints are relatively strong among enterprises with lower marketization level,and the weakening role of corporate social responsibility for financing constraints is enhanced.This situation is more pronounced in non-state-owned enterprises.(4)In the case of politically connected enterprises,there is a relatively strong financing constraint for non-political enterprises,and corporate social responsibility has increased the impact of financing constraints.It is even more pronounced in non-state enterprises.Finally,this paper further supports the research conclusion through the investment-cash flow sensitivity model and the robustness test of ordinary least square method.This paper provides empirical evidence for the economic consequences of social responsibility of listed companies from the perspective of financing constraints.It helps us to understand the mechanism and ways of social responsibility impact on the company's value,which enriches the breadth and depth of related research.At the same time,the institutional characteristics are added to the study of the relationship between corporate social responsibility and financing constraint,expanding the research of the mechanism of the institutional characteristics.The research conclusion of this paper has practical guiding significance for alleviating corporate financing constraint,providing a basis for the government and financial institutions to improve the evaluation system,perfect the relevant policies,strengthen the supervision mechanism,standardize market order,and guiding enterprises to change the management ideas,fulfill their social responsibilities more consciously.