Research On The Impact Of Analyst Coverage And Internal Control Quality On Corporate Social Responsibility

Currently,China’s economy has changed from rapid development to smooth and steady.Due to the turn of social and economic structure and the change of policy environment,enterprises need to transform conventional management idea and have a long-range strategic insight.In recent years,the performance of corporate social responsibility is not satisfactory yet.Some enterprises not only slack off their social responsibility,but even make short-sighted behaviors that harm the interests of the public and damage their public image and reputation,and bring harm to the society.Looking at the status of CSR development in my country,it is still in its infancy and needs to be improved.All this time,CSR has always been much attention by academic and realistic circles.But as an outside element,there is no consensus on whether its role is pressure or motivation,so far no consensus has been formed.From the perspective of combining internal and external governance,make the impact of analyst coverage and built-in control mass on CSR are the research emphasis,incorporating internal control as an intermediary variable into the research framework to explore the path through which analyst coverage affect corporate social responsibility.Based on previous research results and basic theories,theoretical analysis and assumptions are made from three aspects:analyst coverage and CSR,internal control quality and CSR,and the mediating effect of internal control quality.Lastly,this paper has the Shanghai and Shenzhen A-share listed companies in recent ten years as the research specimen,build an empirical model to inspect the data.The research conclusions are as follows:First,analyst coverage is significantly positively correlated with CSR,and this effect is more prominent in state-owned enterprises.Analyst coverage can improve the capital market’s cognition of the value of social responsibility information,and its supervision of the market can have a governance effect on enterprises.Second,the quality of internal control is positively related to social responsibility,and this promotion effect is more obvious in nonstate-owned enterprises.The higher the quality of internal control,the more complete the institutional system in all aspects of the enterprise,providing resources for social responsibility activities and constraining the behavior of management.Third,the quality of internal control plays a partial intermediary role in the relationship between analyst coverage and corporate social responsibility,internal control is the precise path through which analysts influence CSR.Social responsibility commitment is a must-answer question for enterprises in the new era,and it is a concept that should be practiced for the long-term healthy development of enterprises.Based on the research conclusions of this paper and the realistic backdrop of the development of CSR in our country,the government,enterprises and analysts industry to promote the implementation of corporate social responsibility.First,improve the top-level design of social responsibility and strengthen the dissemination of social responsibility concepts.Improve laws of CSR to provide legal protection for its carrying out,and spread the concept of social responsibility to make it deeply rooted in the hearts of the people and form a good social atmosphere.Second,make the corporate internal control system perfect,make CSR awareness internalized.Integrate social responsibility into the internal control system and corporate culture,establish a perfect social responsibility information disclosure institution,subtly enhance the corporate social responsibility awareness.Third,strengthen the construction of analyst teams and implement standardized industry systems.By improving the professionalism and independence of analysts,analysts can better exert their external governance effects on enterprises and promote enterprises to actively undertake social responsibilities.