Social Responsibility Information Disclosure, The Nature Of The Ultimate Controller And Investment Efficiency

In recent years, along with the introduction of relevant social responsibilityinformation disclosure policy and guidelines (Shenzhen Stock Exchange “listedcompany social responsibility guidelines”(2006), Shanghai Stock Exchange “notice onstrengthening the listed company’s social responsibility”(2008), etc.), academiagradually began to pay attention to study on corporate social responsibility andinformation disclosure of and its economic consequences. But the current research onsocial responsibility primarily focuses on its impaction on financial performance,enterprise value, as well as the capital cost. Because of the immaturity of China’s capitalmarket and not well organized investor protection system, which makes our financialinformation can be easily manipulated; it is difficult to reflect the company’s true status.Information asymmetries lead to inefficient investments. However, of the currentlyavailable literature, very few academics studying social responsibility informationdisclosure influence on investment efficiency, and fewer empirical researches on thecorrelation between these two, and that is the focus of this paper.In this paper, we take those companies which publish CSR reports as the researchsample. First of all, we study the origin of over investment and insufficient investmentfrom two aspects: information asymmetry theory and agency theory; then we study theimpact of social responsibility information disclosure on the company’s investmentefficiency from the perspective of financing constraints and corporate governance. Byusing RSK (Rankins CSR Ratings, RKS) indicators to measure the level of socialresponsibility information disclosure, and the Richardson model to measure theefficiency of investment, we study the empirical research on the relationship betweensocial responsibility information disclosure and investment efficiency. The study samplein Western countries is built on a mature, perfect and standardize market economic basis.As a developing emerging and transitional country, further study on how the ultimatecontroller affects the relationship between social responsibility information disclosureand investment efficiency should be combined with China’s institutional background.Empirical results show positive correlation between listed company’s socialresponsibility information disclosure and investment efficiency; positive correlationbetween listed company’s social responsibility information disclosure and over-investment; positive correlation between listed company’s social responsibilityinformation disclosure and under-investment; higher correlation between socialresponsibility information disclosure and investment efficiency in non-state-ownedholding company than the state-owned enterprises.Results of this research can not only provide a reference for different ownershipenterprises to formulate development strategies, but also provide recommendationswhen the government introduce corporate social responsibility work guidance,promoting sustainable development of enterprises and taking social responsibilityaccording to the actual situation of enterprises,stepping into a virtuous cycle of win-win.Meanwhile, may the conclusions of this study draw attention from investors in themarket to pay more attention to corporate social responsibility information disclosure,and carry on a reasonable and effective supervision of their disclosures! Conclusion ofthis paper provides impetus and basis for enterprises to take the initiative to fulfill socialresponsibility. Raising the enthusiasm of enterprises undertaking social responsibility isnot only conducive to the sustainable development of enterprises, but also conducive toachieve the harmonious social goals-"Beautiful China"...