Social Responsibility Information Disclosure And Financial Constraints

As the establishment and improvement of China’s socialist market economysystem, state-owned enterprise reform continued to deepen, due to merging,restructuring, etc., the formation of enterprise groups in China and the acceleratingpace of expansion of the size, resulting that enterprises cannot survive withoutfinancing, thus making the financing constraints as general problems that our businessconfront. In China, there are many reasons which leading enterprises in the financingdifficulties: market allocation by government intervention; capital market liquidity islow; business regulation is not perfect; access to information is inefficient and thevery serious asymmetric information and so on. Therefore, to reduce excessivegovernment intervention, the optimization of the allocation of capital markets, tostrengthen supervision, to enhance efficiency of the access to information and toimprove the disclosure quality of information is urgent, this is the focus of this paper.In this paper, we adopt the2010data of listed companies, from the perspective of theinformation disclosure of social responsibility, the empirical result have test thefinancial constraints of China’s listed companies. The study found that there is asignificant negative correlation between social responsibility report and the company’sfinancing constraints, and during the company with social responsibility report,opposed to state-controlled enterprises, the detail level of social responsibilityinformation disclosure for non-state-controlled enterprises more obviously affectfinancing constraints. The conclusion also establish after robustness test.The empirical research results show that information disclosure of socialresponsibility can reduce corporate financing constraints, which is to improve thefinancing problem of China’s enterprises. Also making company have incentive toeffectively promote the level of social responsibility information disclosure, and toimprove corporate image, reduce the degree of information asymmetry, further toimprove the efficiency of capital market allocation.