Study On The Relationship Between The Corporate Social Responsibility And Stock Price Crash Risk

Corporate social responsibility refers to the enterprises by reasonable allocation of resources to create economic profits, responsible for the interests of the shareholders at the same time, also undertake such as creditors, employees, customers, suppliers, communities, the environment, the social responsibility of the government.With the development of social economy in recent years, increasing public attention behavior for the enterprise, the implementation of the corporate social responsibility has become an important standard evaluating enterprise behaviors.Share prices collapse, also known as tumbling shares, the stock market crash, means without warning, the market index or showed a sharp fall in share prices.Causes of the share price collapse is neither external influence enterprise operating performance and not outside investors’ irrational behavior of operation, but hidden negative information in the process of trading or the result of the adverse information disclosed gradually.When these unfavorable factors accumulated to the point of can’t afford to, any negative events may cause the accumulation of information was released in an instant, lead to share price collapse.This study explores whether corporate social responsibility (CSR) or lead to the risk of the stock price crash.Disclosure of corporate social responsibility report is the important measure of financial reporting transparency, which affects the company’s specific risk, stock price crash risk.On corporate social responsibility, the use of database is embellish spirit rating scale to measure;It is stock stock price crash risk, to take negative earnings extreme value and stock price fluctuation ratio of two dimension measurement. If there is a sense of social responsibility of the company is committed to a high level of transparency and participation in the disclosure of financial report higher information transparency, they will have a lower stock price crash risk.However, if managers involved in corporate social responsibility to cover up bad news censorship and escape from the shareholders, CSR can lead to higher stock price crash risk.Based on the 2010-2014 Shanghai and shenzhen two city all a-share listed companies as the primary samples.The CSR how to affect stock price crash risk has carried on the empirical analysis.The empirical results show that the enterprises to carry out CSR activities can reduce the company’s stock price crash risk.Through the study of this article found that the company’s corporate social responsibility is to control the future stock price crash risk and other risk predictors of a particular company.Result is actively carry out the implementation of corporate social responsibility company social responsibility to avoid bad news hiding behavior, so as to reduce the risk of share prices collapse.The role of CSR is especially important in corporate mechanism.