Research On The Relationship Between Disclosure Of Corporate Social Responsibility Report And Cost Of Capital

Since September 2006, Shenzhen Stock Exchange and Shanghai Stock Exchange have released a series of papers and guidelines in succession, which aims to encourage and boost the listed companies to fulfill social responsibilities and promote a sustainable development of social responsibility investment. But most of the domestic listed companies have not established a social responsibility system yet, qualities and quantities of information disclosure of corporate social responsibilities are too low to draw the attention of relevant companies or decision makers. Any policy decisions in a company should be driven by potential financial or business interests, researches on the company’s voluntary disclosure of social responsibility report and economic benefits will help the companies actively fulfill the relevant responsibilities and disclose the information of corporate social responsibility.At present, domestic and foreign scholars mainly focus on the impact of the information disclosure of corporate social responsibilities on financial performance, there are few researches on the capital cost which is one of corporate financial core concepts and evaluation index, and have not got a unified conclusion; A large quantity of literature only focus on the impact of disclosure of social responsibility information on the capital cost instead of the possible interaction between the two. Therefore, this paper will be based on the interaction relationship of information disclosure of corporate social responsibilities and corporate capital costs, discuss the motivation and function of information disclosure of corporate social responsibilities.This paper picked 2009-2013 Shanghai and Shenzhen A-share listed companies as samples, according to requirements for listed companies disclosure of social responsibilities reports in Shanghai and Shenzhen, as well as the database of A-share listed companies social responsibility reports in RLCCW, firstly analyzes the motivate reasons of the company’s voluntary disclosure of social responsibilities report, the empirical results turned out that reducing capital cost is one of the intrinsic motivation; then demonstrates the effects of information disclosure of corporate social responsibilities, disclosure helps to reduce capital cost, in addition, the higher of the disclosure quality the more capital cost will be reduced. Subsequently, this paper has changed the measurement of capital cost, and made robustness test of the above conclusions. Finally, this paper puts forward policy recommendations based on the research content and the market situation. The research content of this paper is helpful to deepen the theoretical research on the field of information disclosure of corporate social responsibilities and non-financial information disclosure in our country, and provide new solutions for companies to reduce capital cost, guide companies to take social responsibilities, improve the positivity of the companies to disclose social responsibilities information, and contributes to economic and social sustainable development.