The Influencing Mechanism Of Corporate Social Responsibility On Financing Constraints

With the continuous improvement of China's economic level,the capital market has also developed significantly,but it is still not perfect,financing constraints is one of the important issues.As for China's high-polluting industries,due to the increasing attention of public to ecological issues in recent years,companies in the high-polluting industries have also received widespread attention Influenced by China's institutional background,China's capital market has many problems,such as information asymmetry,imperfect management mode of the company,and low reputation of some enterprises.It is difficult for listed companies in high-polluting industries to carry out financing activities,which restricts their daily operation and future development.Basically,financing constraints are caused by information asymmetry and inefficient allocation of resources caused by the imperfect capital market.For external investors and creditors,the lack of effective information makes the risk of capital investment unable to be accurately measured,which will affect their decision-making.At the same time,the differences in the ability of enterprises to obtain resources themselves results that some enterprises unable to obtain sufficient economic resources and business opportunities,thus causing the current situation of financing difficulties for them.In order to obtain sufficient funds to ensure their own business activities and future development,it is essential for enterprises to find effective ways to ease their financing constraints.In recent years,the public has paid more and more attention to the fulfillment of corporate social responsibility,which provides a direction for enterprises to effectively transmit their own information,reduces the degree of information asymmetry,improves the trust and goodwill of stakeholders,and enhances the ability of enterprise resource acquisition.Enterprises can transmit good signals to the market by fulfilling social responsibility,which could improve information transparency and enhance enterprises' ability to acquire resources.At the same time,fulfilling social responsibility can enrich the relationship network of enterprises and bring more social capital for enterprises.These channels provide ways for enterprises to ease their financing constraints.Based on the existing literature,this paper does research on the relationship between corporate social responsibility and financing constraints from the perspective of information asymmetry and social capital,taking A-share listed companies in high-polluting industries in China from 2013 to 2017 as the research objects.This paper takes financing constraints as explained variable,corporate social responsibility as explanatory variable,calculates the degree of information asymmetry to measure the information effect,and constructs an index system to calculate social capital to measure the resource effect.At the same time,referring to the previous literature,this paper selects relevant control variables,constructs multiple linear regression models,and use archives research method,mediation effect test method and other methods to find that:(1)There is a significantly negative relationship between corporate social responsibility and financing constraints,that is,corporate social responsibility can alleviate financing constraints;(2)The information asymmetry mediates the effects of corporate social responsibility on financing constraints,that is,corporate social responsibility can alleviate financing constraints through information effect.And information effect is more significant in non-state-owned enterprises,firms of which the region is with higher financial development level and enterprises that did not issue social responsibility reports in that year;(3)The social capital mediates the effects of corporate social responsibility on financing constraints,,that is,corporate social responsibility can alleviate financing constraints through resource effect.And resource effect is more significant in state-owned enterprises,firms of which the region is with higher level of financial development and enterprises with less social capital.Throughout the full text,the innovations and contributions of this paper are as follows:(1)Innovation of research perspective.Previous literatures on corporate social responsibility and financing constraints mostly focused on the relationship between them and the impact of corporate social responsibility on the classification of financing constraints,while relatively few studies on its internal mechanism.This paper examines the relationship between corporate social responsibility and financing constraints,explores its internal mechanism from two aspects,which are information effect and resource effect,examines the existence of information effect by examining the intermediary effect of information asymmetry index,and examines the existence of resource effect by examining the intermediary effect of social capital.This paper enriches the existing research about the impact of corporate social responsibility on financing constraints and its internal mechanism.(2)In this study,we further classify the research samples according to the criteria of the nature of enterprises,the level of regional financial development,whether to issue social responsibility reports in that year,and the ownership of social capital.This paper tests that information effect and resource effect play significant roles respectively,highlights the transmission role and guiding role of information asymmetry and social capital as intermediaries in different situations,and enriches the relative research in theory.(3)From the practical point of view,this paper provides specific measures for listed companies in high-polluting industries to ease financing constraints,and provides new empirical evidence for enterprises to actively fulfill their social responsibilities.At the same time,this paper also provides reference for the government or regulatory bodies to formulate relevant policies and regulations,which has guiding significance for practical work.