Corporate Social Responsibility, Information Transparency, And Stock Price Synchronicity

The 20 th National Congress of the Communist Party of China Report proposed that promoting the green and low-carbon economy and society are crucial to high-quality development.With environmental policies becoming increasingly strict,green finance practices are booming,and more and more enterprises are choosing to elevate corporate social responsibility(CSR)to a strategic height,actively participating in precision poverty alleviation,epidemic prevention,disaster relief,rural revitalization and other areas to contribute to the society and demonstrate corporate responsibility through practical actions.Corporate social responsibility is transitioning to sustainable development,gradually transforming from external demands into the inner power of enterprise.However,the phenomenon of disembedding of corporate social responsibility is also gradually emerging,resulting in a series of incidents of loss and alienation of corporate social responsibility.Enterprises can actively undertake corporate social responsibility,which can enhance their collaborative and reciprocal relationships with stakeholders.By fostering a harmonious and sustainable development atmosphere,reducing stakeholders’ uncertain understanding of the fundamentals of the company,minimizing information asymmetry and exhibit lower stock price synchronicity in the capital market.As such,embracing CSR can be a valuable strategy for achieving both economic and social objectives.Previous studies have found that corporate social responsibility information disclosure can help suppress stock price synchronicity,but few literature analyze the impact of corporate responsibility performance.Therefore,under the background of Chinese capital market,can corporate social responsibility performance effectively reduce stock price synchronicity?This thesis focuses on Chinese A-share listed companies from 2010 to 2020 as the main research objects.It analyzes the impact of social responsibility performance on stock price synchronicity and explores the mediating role of information transparency.Furthermore,the thesis examines the impact mechanism of different dimensions and industry differences on stock price fluctuations.The study found that:(1)There is an inverted U-shaped relationship between CSR and stock price synchronicity.(2)Information transparency plays a mediating role between CSR performance and stock price synchronicity.(3)The fulfillment of CSR does not help to reduce stock price synchronization,while the fulfilling high-quality technical CSR can reduce stock price synchronicity.(4)The inverted-shaped relationship between CSR and stock price synchronicity is more significant in non-heavy pollution industriesBased on the empirical results,this thesis provides policy recommendations at the regulatory,industry association,and corporate levels,including:(1)Relevant regulatory agencies should refine policy implementation,strengthen supervision of listed companies,create favorable conditions for sustainable development,and establish a new high-quality development ecology for the capital market;(2)Industry associations should establish social responsibility industry norms and standards,regulate corporate social responsibility,promote the concept of corporate social responsibility,and reverse negative public perceptions and evaluations of the entire industry’s social responsibility activities through corresponding social responsibility disclosure and publicity;(3)Listed companies should actively undertake corporate social responsibility,improve the quality of information disclosure,pay attention to good interaction with major stakeholders,strive to meet the expected value of major stakeholders for the company’s sustainable development ability,and maintain stable business operations.