Corporate Social Responsibility, Financial Constraints And Corporate Investment Behavior

Since1924the first time corporate social responsibility or CSR has been proposed, it has drawn more and more attentions across the world. From the beginning of the21st century, Chinese government and relative institutions also pay attention to the construction of CSR regulations. Firms also realize that CSR may influence their value, competitive power and financial activities. Investment activities play an important role in the development of the company, and have a close relationship with the firms’value and competitive power. Therefore, this essay tires to figure out the impact of CSR on the firms’investment behavior with the consideration of the financial constraints, to examine whether the fulfillment of CSR can relieve the firms’financial constraints and to influence their investment behavior.Based on the review of the existing literature and the analysis of the relative theories, including information asymmetry theory, the pecking order theory and principal-agent theory, this essay chose2010-2013panel data of the A share listed companies from Shanghai and Shenzhen stock exchange of China as a research sample, using the empirical research method to analyze the relationship of the CSR, financial constraints and firms’ investment behavior. This essay comes up with the following four results:first, the fulfillment of CSR have a positive impact on firms’ investment behavior; second, there is a negative relationship between firms’ financial constraints and investment behavior; third, the fulfillment of CSR can relieve the firms’financial constraints, and then affect their investment behavior; forth, the fulfillment of CSR of the SOE and non-SOE have difference in relieving firms’financial constraints. Finally, according to the empirical analysis results, this essay puts forward two relative suggestions.