Labor And Social Security, Corporate Reputation And Debt Financing

Social insurance is an enterprise security system currently widely used around theworld. To some extent, its pay level can show the enterprise labor and social securitylevel. In china, we have a labor and social security system which is based on theproportion of wage insurance system, which is also based on the employmentrelationship, and the companies and employees share the social insurance by a certainpercentage. However, in the implementation process, there are a variety of ways toevade social insurance contributions,which affect the enthusiasm of the workforcedevelopment and economic society. Corporate reputation is considered to be aneffective constraint mechanism among many systems. As an intangible asset, corporatereputation plays an increasingly important role in corporate governance, attracted wideattention from domestic and foreign scholars. In recent years, because of the reputationcrisis caused enterprises in the capital market financing capability crash, which illustratethat the corporate reputation having a great impact on the efficiency of corporatefinance.The relevant literature was reviewed in this file at the beginning, combined withanalysis of existing research on the labor and social security, corporate reputation andthe level of debt financing, as well as differences in the impact of different economicregions. Based on previous research, summed up that the level of labor and socialsecurity and level of debt financing plays a key role in the reputation of the indicators,which is the corporate media attention. Take listed companies in2008-2012as sample,the housing fund accounting for social insurance contributions in proportion tocharacterize the level of the labor and social security of enterprises, and takeasset-liability ratio as a measure of debt financing capabilities. It shows the relationshipsof the enterprise’s labor and social security, corporate reputation and financing capacity.On this basis, it researches enterprises of different economic regions, and have theconclusion that the impact of corporate reputation caused by different levels of laborand social security have a significant difference for the financing capacity.The results show that:①If other conditions are the same, the higher of the levelof labor and social security, the better of the enterprises reputation.②Better corporatereputation will make access to external funding support easier, and the stronger of debtfinancing.③With high labor and social security status will have more chances to obtain debt financing.④Enterprises in eastern China compared with enterprises in the centraland western regions, the impact of labor and social security which lead the businessreputation of corporate have a significant impact for the financing.The research conclusions enrich the existing research of the enterprise labor andsocial security and the corporate governance. Meanwhile, it has a reference value for theestablishment of a sound enterprise labor and social security laws and regulations, andcan also strengthen the supervise on of listed companies involved in the social insurance,effectively protect the legitimate rights and interests of workers in enterprises.