Correlation Between CSR And Inefficient Investment

Asymmetric information and agency costs are the main two reasons affecting investment efficiency. Based on stakeholder theory, agency theory, information asymmetry theory, based on the study of the influence of corporate social responsibility of enterprises inefficient investment, and discusses corporate social responsibility from the perspective of a different nature to suppress non-equity investment efficiency significant difference effect. Corporate social responsibility to solve inefficient investment (underinvestment and overinvestment) provides a new perspective.In this paper,2008-2013Shanghai and Shenzhen A-share listed company board for the study sample, the empirical validation of the corporate social responsibility can effectively inhibit excessive investment and underinvestment. And non-state corporate social responsibility for overinvestment and underinvestment inhibition is more significant than that of state-owned enterprises. Get paper concludes:Stakeholder-based corporate social responsibility, is a very effective way businesses communicate with stakeholders. CSR helps to reduce the information asymmetry between companies and stakeholders, as well as agency costs. Thereby reducing the corporate finance limited reduce underinvestment. Because of corporate social responsibility in favor of a more reasonable definition of the relationship between rights and responsibilities, and configuration between the owners and operators, thus solving a series of problems due to Agent separation of ownership and control caused, so reducing excessive investment enterprises. Due to the extent of non-state enterprises with limited financing more than state-owned enterprises, so the non-state-owned corporate social responsibility for the lack of impact on business investment is more significant. SOEs are subject to a strong degree of government intervention, so the impact of non-state-owned corporate social responsibility investment over the more significant.Finally, according to the results of research and analysis, make some policy recommendations from three governments, businesses, markets. Hope that companies can better fulfill their social responsibility, reduce financing constraints. Combined with China’s national conditions, study the efficiency of non-listed companies in China’s investment will help the further development of modern investment, the rational allocation of our limited resources, but also has important practical significance.