Research On The Impact Of Heavy Polluting Enterprises’ Social Responsibility On Financial Performance

Corporate Social Responsibility means that companies must consider the interests of society when pursuing their own interests.The 14 th Five-Year Plan sets "the extensive formation of green production and lifestyle,the steady decline after carbon emission reduction peaks,the fundamental improvement of the ecological environment,and the basic realization of the goal of building a beautiful China" as the general program for China’s future development.Under the environment of China’s economic transformation from high-speed growth to high-quality development and people’s continuous improvement of environmental quality requirements,all sectors of society are paying increasing attention to corporate social responsibility.As an important part of China’s economic growth,in the face of increasingly serious resource and environmental constraints,how to better fulfill their social responsibilities while pursuing their own interests is directly related to the sustainable development of enterprises and the construction of a beautiful China.Therefore,the study of heavy pollution corporate social responsibility is of great practical significance.At present,the impact of heavy polluting enterprises’ social responsibility on financial performance has always been the focus of academic attention,and scholars generally believe that the higher the level of corporate social responsibility,the better the promotion effect on financial performance.In fact,in order to fulfill their social responsibilities,heavy polluting enterprises will inevitably need to invest more resources,resulting in higher operating costs,which in turn will affect the improvement of their financial performance,which may have an "overreach" effect.So,whether the relationship between the performance of social responsibility and financial performance of heavy polluting enterprises is a simple linear relationship or a non-linear relationship is worth exploring.In addition,with the green transformation of China’s economy and the promulgation of green credit policies,heavy polluting enterprises will face higher financing constraints.Then,as an important influencing factor of enterprise business activities,the role of financing constraints in the impact of heavy polluting enterprises’ social responsibilities on financial performance deserves in-depth study.Therefore,this paper selects the annual data of enterprises in heavy polluting industries listed in Shanghai and Shenzhen A-shares from 2011 to 2020 as a research sample,revealing the mechanism of the role of heavy polluting enterprises on financial performance by fulfilling social responsibilities.Secondly,on the basis of the linear model,the square term of CSR is introduced to study the nonlinear relationship between CSR and financial performance,and at the same time,heterogeneity analysis is used to test whether there are differences between different samples,and the mediation effect model is further constructed to test whether financing constraints play a mediating role between CSR and financial performance.The conclusions of the study are as follows:(1)there is a significant inverted U-shaped relationship between the performance of social responsibility by heavily polluting enterprises and their financial performance,and the results are still valid after the robustness test;(2)Compared with state-owned enterprises,the inverted U-shaped relationship between social responsibility and financial performance is more significant in non-state-owned heavy polluting enterprises;(3)Compared with large-scale enterprises,the inverted U-shaped relationship between social responsibility and financial performance is more significant in small-scale heavy polluting enterprises;(4)Compared with mandatory disclosure enterprises,the inverted U-shaped relationship between social responsibility and financial performance is more significant in voluntarily disclosed heavy polluting enterprises;(5)Financing constraints play a part-mediating role in the inverted U-shaped relationship between the performance of social responsibilities and the financial performance of heavily polluting enterprises.Finally,based on the above research conclusions,relevant policy recommendations are put forward.