The Impact Of Corporate Social Responsibility On Investment Cash Flow Sensitivity

As an important part of corporate activities,investment and financing are very important to the company’s healthy development.With the deepening of related research,the investment cash flow sensitivity is the point.On this issue,it mainly can be divided into two aspects,which is about its existence and the cause of occurrence.However,there are few studies on the impact of a specific behavior of an enterprise on the sensitivity of investment cash flow.Social responsibility has received extensive attention since it was mentioned.Fulfilling social responsibility can not only affect the cash flow of the enterprise,but also affect the reputation and value of the enterprise.Therefore,it will have some influence on the sensitivity of investment cash flow.Based on the special industrial status and industrial characteristics of environmental protection industry,this article takes it as a research objectt to explore the impact of social responsibility on investment cash flow sensitivity.It not only enriches the research field of investment cash flow sensitivity,but also provides a basis for environmental protection industry to formulate appropriate investment policies and relevant policies of social responsibility.At present,environmental protection industries are relatively stable in fulfilling their social responsibilities,and the fulfillment of corporate social responsibility will affect the sensitivity of investment cash flow by affecting corporate reputation,value,and cash flow.This article selects datas from 2010-2016 for listed companies in the environmental protection industry.Through empirical analysis,the sensitivity of investment cash flow in environmental protection industry is proved.Then,the measurement index of corporate social responsibility and its cross term with internal cash flow are added into the model.This is mainly to test the impact of corporate social responsibility on the sensitivity of investment cash flow.The results show that corporate social responsibility can ease the sensitivity of investment cash flow.On this basis,we divided the sample into two categories based on financing constraints.The results show that the greater the degree of financing constraints,the more obvious the mitigation effect of corporate social responsibility on investment cash flow sensitivity.And then,based on internal cash flow,we split the sample into two categories.The results showthat,when free cash flow is sufficient,social responsibility can weaken the sensitive relationship between investment and cash flow,when free cash flow is not sufficient,the implementation of social responsibility will aggravate the sensitive relationship.The main shortcomings of this article are as follows: the definition of environmental protection industry may be subjective.No variables representing industry characteristics were added to the model;The measurement of social responsibility is not comprehensive enough.First of all,the listed companies of environmental protection industry should actively improve their own information disclosure mechanism,improve the reputation of enterprises and strengthen the supervision of management.All these methods can reduce the occurrence of inefficient investment behavior of enterprises as far as possible.Secondly,it should consider its own characteristic to formulate appropriate social responsibility policy.Finally,it can achieve the purpose of the highest efficiency in the use of enterprise funds.