Study On The Relationship Between Information Disclosure Of Corporate Social Responsibility And The Cost Of Capital

Most of the listing corporations in our country have equity financing as the mainchannel for funds, but the cost of equity financing is generally greater than the debtfinancing cost, so the enterprises hope that their capital cost can be kept in the ideal levelso as to reduce the financial burden. Empirical studies have confirmed that companies whodo a good job in the investor relations management,can effectively reduce the cost ofequity capital.However, with the changes of social environment and investors’ quality level,investors have also changed the requirement for information disclosure.They not onlyfocus on the company’s financial information, but alse on the non financialinformation.Corporate social responsibility (CSR) performance information is theimportant part. Corporate social responsibility births in a long time.Over the past fortyyears,it has been an important topic of researches on the theory of capital markets, and inrecent years, the financial sector has a new investment method-investment in socialresponsibility,which promotes the investors focus more on corporate socialresponsibility.CSR information disclosure has become an important bridge betweenenterprises and investors to establish a good relationship.This article bases on the Shanghai and Shenzhen A shares of listing Corporation as asample,and tests and analysises the relationship between CSR and the cost of equity capital.The empirical results show that the corporate social responsibility information disclosurelevel has negative correlation to the cost of equity capital in the company, namely the highsocial responsibility information disclosure level can contribute to reducing the cost ofequity capital.The U type relationship between corporate social responsibility informationdisclosure and the cost of equity capital has not been confirmed, that is to say the currentlisting corporation social disclosure is not excessive, or that there is no serious exaggeratedfalse disclosure. Through this research, we can see that the corporate social responsibilityinformation disclosure has become an important factor affecting the listing Corporationmanagement.How to improve corporate social responsibility information disclosure on thebasis of investor relations management is the issue that listing Corporations need toconsider.