Empirical Study On The Relationship Between Corporate Social Responsibility And Financing Constraint

In recent years, the issue of corporate social responsibility has been more and more attention, especially the occurrence of corporate social responsibility issues, such as:Sanlu milk powder incident, Foxconn jumping events. For a long time, China’s enterprises’economic development mode is a crude way, this mode of development to bring serious social responsibility issues, including environmental pollution is a particularly serious problem, such as Recently attention problems: PM2.5. Corporate neglect the social responsibility to developing, even though it can bring to the enterprise short-term effects, but not conducive to long-term sustainable development, contrary to President Hu put forward the road of sustainable development. There is no strategic vision to look at corporate social responsibility, and generally low awareness of corporate social responsibility, corporate decision-making behavior services only to maximize their profits. China today, a variety of legal system is not sound; people’s values are generally the only money is from. However, enterprises are to healthy long-term development and to the international, must rely on to fulfill their social responsibility and sustainable development strategies. This shows the importance of corporate social responsibility goes without saying that this stage corporate social responsibility triggered by the seriousness of the problem and concentrate forces we must address the issue of corporate social responsibility.Chinese enterprises generally lack a sense of social responsibility, corporate generally think social responsibility useless; this also has a great relationship with our theoretical and empirical research. Moreover, especially on the conceptual framework of corporate social responsibility, impact factors and so on. For the discussion of the value of corporate social responsibility merely in the financial results, and the current study of corporate social responsibility is on the corporate financial results, but due to select different indicators and models constructed no uniform results. For Chinese scholars, the urgent need to study the path specific value of the role of corporate social responsibility, for enterprises to undertake their own social responsibility to provide guidance and also provide recommendations for the Chinese government to develop a variety of social responsibility policies. From the angle of asymmetric information, this paper combining normative and empirical research methods, a path of corporate social responsibility to create value through theoretical analysis and empirical testing. First, this paper study the theory of corporate social responsibility can reduce the information asymmetry between the inside and outside of the enterprise, and structure model to the empirical test. Then, the combination of corporate finance constraint causes as well as our financial markets financing factors, theoretical analysis and empirical corporate social responsibility can alleviate financing constraints. In order to investigate the different inter-industry, taking into account the integrity of financial data and desirability, this article from the database of the CSMAR, The Ccer database, Run Ling Global Sites selected A-share listed companies2008-2010sample as the sample based on an empirical model, this paper examines the value of the mechanism of corporate social responsibility to ease financing constraints. In this paper, the theoretical analysis and empirical tests obtained conclusions of this study, combined with our current situation based on the conclusions of this study, which proposed policy recommendations, to provide empirical evidence for the enterprises to fulfill their social responsibility and government policy and theoretical guidance.Chapter Ⅰ:Introduction. This chapter covers the background of the writing of this article, the research purpose and meaning, research ideas and research methods, as well as the contribution of the paper and shortcomings. This chapter first introduces the development of the corporate social responsibility movement, pointed out that China’s enterprises are facing serious social responsibility, combined with China’s enterprises are facing financing constraints and the complexity of the value of corporate social responsibility mechanism, the urgent need to carry out corporate social responsibility value creation path research to motivate corporate social responsibility research background. The Then This article account the purpose and significance of the writing of this article, pointed out that the actual meaning and theoretical significance of this writing. Finally, the combination of issues need to be studied in this paper, the author elaborated the idea of the study and research methods, combined with previous studies pointed out that the contribution of this article and inadequate.Chapter II:A Literature Review. This chapter is mainly based on the research of scholars in the past, an overview of corporate social responsibility and corporate financing constraints. First of all, the author describe the three stages of the concept of corporate social responsibility (formation, controversial development) and the Institute of Social Responsibility Corporate Social Responsibility measurement methods (content analysis, reputation index, based on the survey combing measurement, TRI method, indicator measurement method), based on this paper’s own research, the concept of the above corporate social responsibility metrics elaborate combination of this corporate social responsibility metrics. I integrated the relevant research literature, from corporate social responsibility with asymmetric information, corporate social responsibility and corporate reputation elaborated study of the relationship of corporate social responsibility and financing constraints.Chapter III:theoretical basis and assumptions. This chapter describes the derivation of the assumptions involved in the theoretical basis and to describe the theoretical analysis of this article hypothesis. First, a simple overview of the theoretical basis of this paper involved, stakeholder theory, signal transmission theory and social cognitive theory. Then, the author based on the above theory starting from the angle of asymmetric information; deduce the underlying assumptions of corporate responsibility and asymmetric information. Based on the theory of corporate social responsibility and information asymmetry, combined with the degree the causes of the financial constraints of the literature review section, I conducted theoretical analysis of the extent of corporate social responsibility and corporate finance constraints three hypotheses. Finally, proposed five hypotheses:(1) H1a:corporate disclosure of social responsibility to fulfill information, enterprises and investors, the lower the degree of information asymmetry; H1b:the better the performance of the corporate social responsibility, businesses and investors lower the degree of asymmetry; H2a:corporate disclosure of social responsibility information can reduce the financing constraints; H2b:the better the performance of the corporate social responsibility, lower financing constraints; H2c:in the case of other conditions remain unchanged, the private enterprises company, good corporate social responsibility performance, a more pronounced role in mitigation financing constraints.Chapter Ⅳ:Research Design. This chapter covers the information asymmetry metrics to measure indicators of corporate social responsibility indicators design model constructed to test the assumptions of this article. I practicalities and considerations of the previous studies, the author uses a number of analysts tracking as corporate information asymmetry metrics. Then learn from Shen Hongtao (2005) weight design, combined with the author uses various stakeholders by contribution rate indicators, weighted composite score of Corporate Social Responsibility is obtained. Finally, based on the research hypothesis of this paper, I draw on previous studies using the model, constructed the test model used in this paper.Chapter Ⅴ:An Empirical Test and analysis. This chapter is based on the last chapter of the study design, the empirical test of the relationship between corporate social and financial constraints. First, based on the actual selected A-share listed companies as samples and data processing, followed by sub-hypotheses were descriptive statistics and correlation analysis, regression samples combined regression results verify assumptions the situation analysis. This chapter analyst tracking the number of listed companies as information asymmetry proxy variables, through regression analysis, corporate disclosure of social responsibility information can reduce information asymmetry and corporate commitment to social responsibility can also reduce the information asymmetry between the inside and outside of the enterprise. Based on Path analysis and the theoretical analysis, this paper test the relationship. First test of the social responsibility of corporate disclosure information and financing constraints, the regression results found that the social responsibility of corporate disclosure information can effectively reduce financing constraints. Then, the enterprise bear the social responsibility of corporate financing constraints the degree of carry out the test, the sample overall regression results are not significantly each year to control variables significantly, taking into account the country in2008occurred epic proportions of "Wenchuan big earthquake", the author yearly regression found that corporate social responsibility in2008increased financing constraints, corporate social responsibility to reduce the degree of financing constraints in2009and2010. These results in2008, mainly due to social enterprises have donated large earthquake, adding to the financial pressure.Chapter VI:research conclusions and policy recommendations. This chapter begins by standing on the point of view of the full text study combines the results were summarized in the conclusion of this article, to draw the conclusions of this paper. Corporate disclosure of social responsibility information can reduce the information asymmetry between the inside and outside of the enterprise, in turn, can reduce the degree of financing constraints. Corporate social responsibility can reduce information asymmetry, in turn; can reduce the degree of financing constraints. The regression results show that the different nature of state-owned and private enterprises, state-owned corporate social responsibility is more significant in reducing the effects of financing constraints. Then based on empirical results and the actual situation, respectively, from the following three aspects targeted proposals and policies:(1) to enhance corporate social responsibility theory perfect to promote corporate social responsibility;(2) social enterprises should strengthen the enterprise’s own sense of responsibility, improve the social responsibility disclosure mechanism;(3) The Government should improve corporate social responsibility law, strengthen external constraints.