Financial Flexibility,Corporate Social Responsibility Disclosure And Inefficient Investment

Under the background of changing the development mode,corporate social responsibility behavior has attracted more and more attention,especially after some listed companies are forced to disclose social responsibility reports.As a form of non-financial information disclosure,corporate social responsibility report can theoretically alleviate information asymmetry,improve the relationship with stakeholders,and have an impact on investment efficiency.This paper studies the impact of corporate social responsibility information disclosure(CSRD)level on inefficient investment,and from the perspective of financial flexibility,studies the different impact of CSRD level on inefficient investment under different resources level.The existing literature about the impact of CSRD on investment efficiency have different conclusions.In view of the differences in the existing research conclusions,this paper takes the listed companies that issued social responsibility reports from 2009 to 2016 as samples,and from the perspective of corporate financial flexibility,studies the impact of CSRD on investment efficiency when enterprises have different levels of available resources.The paper draws the following conclusions:Firstly,high-level disclosure of social responsibility information can alleviate inefficient investment,but compared with over-investment,the mitigation effect of CSRD on under investment is not significant.The Crowding-out of corporate resources partly offsets the capital increment brought by CSRD;secondly,high financial flexibility can improve the under investment.Thirdly,high financial flexibility can provide sustained and stable resource support for enterprises,weaken the crowding-out effect of social responsibility on enterprise resources,and enable enterprises to communicate with stakeholders through social responsibility reports continuously,thus enhancing the improvement effect of CSRD on investment efficiency,especially inadequate investment groups.Further analysis shows that financial flexibility plays a more significant role in non-state-owned enterprises.The paper studies the impact of CSRD on inefficient investment from the perspective of corporate financial flexibility.It finds that in enterprises with higher financial flexibility,the improvement effect of CSRD on investment efficiency is higher,especially on inadequate investment.And further analysis finds that the regulation role of financial flexibility is more significant in non-state-owned enterprises.This finding may provide an explanation for the inconsistency of the existing research results,provide a new research perspective for the existing literature,and inspire enterprises to pay attention to the overall arrangement of corporate financial resources when carrying out social responsibility-related activities.