The Impact Of Corporate Social Responsibility Performance On Bank Loans

Since twenty-first Century, China’s corporate social responsibility(CSR) movement has entered a new historical stage, showing the situation that the whole society are participating in CSR movement. After a number of major pollution incidents such as the 2008 Sanlu poisonous milk powder incident,2010 Zijin Mining acid water leakage accident, the 2012 Guangxi Longjiang cadmium pollution incidents,2014 Lanzhou water benzene excessive and so on, more and more public demands enterprise take practical action to repay society, fulfill the social responsibility. In this environment, more and more enterprises begin to pay attention to social responsibility. However, on the other hand, like every rational economic man, enterprises are selfish, corporate take social responsibility also has their own purpose.The growth and development of the enterprise cannot do without the support of funds, in our country, the financial markets are newly emerging, the banking system is still the main resource used to fund the growth of firms. China’s regulatory authorities take the environmental responsibility of enterprises as the approval conditions of commercial bank credit, which raise the threshold of bank loans. Faced with this policy, whether the enterprise will respond positively, actively fulfill their social responsibilities to cater public’s expectations and so as to reach the conditions of approval of bank credit to obtain more bank loans? This paper tried to discuss the above questions based on the theoretical analysis and empirical analysis.First, this paper reviews the previous literature, summarized the economic consequences of corporate social responsibility; secondly, analyzes the influencing factors of bank loans; then, make a comprehensive analysis about the moral motivation and economic motivation of the corporate social responsibility, combined with the commercial bank’s "green-credit" policy, hypothesize that corporate social responsibility is helpful to obtain bank loans, at the same time, based on the fact that Compared with small and medium enterprises in our country, large enterprises have the characteristics of being high attention and delivering information quick, hypothesize that compared to small and medium enterprises, large enterprises which undertake social responsibility are easier to gain access to bank loans; finally, this paper established an empirical model to test the above hypothesis.In the empirical research, this paper selected 1445 listed companies which released CSR report between 2009 and 2013 in Shanghai and Shenzhen Securities Exchanges, used Rankins CSR Ratings as a measure of corporate social responsibility, used the natural logarithm of total borrowing to measure enterprise’s bank loans, and in accordance with China’s listed company board, the main board listed companies classified as large enterprises, the SME board and GEM listed companies classified as small and medium enterprises, adding other control variables to take regression analysis. We found that, (1) there are significant positive correlation between corporate social responsibility and bank loans; (2) compared with small and medium enterprises, large enterprises fulfill their social responsibility will have significantly positive influence on their bank loans; (3) No matter large enterprises or small and medium enterprises, the growth level of the enterprise, the nature of ownership and the proportion of fixed assets and so on are important considerations for banks in the credit approval of enterprises.