Corporate Social Responsibility And Stock Price Crash Risk

There is some relevant research about enterprise social responsibility and stock price crash risk, but this research is situated in the starting stage and is not mature enough. Therefore, this article attempts to fulfill the blank. From the enterprise point of view, the number of independent social responsibility report is on the rise, the enterprise gradually recognized the importance of social responsibility. In academic research, scholars tend to pay attention to explore the relationship between corporate social responsibility and financial performance, operating performance, corporate value, stock price, executive’s compensation and so on. Based on previous research results, through theoretical analysis and empirical test, this study attempts to examine whether the disclosure of corporate social responsibility can mitigate the stock price crash risk.In recent years, corporate social responsibility has been recognized by domestic scholars and enterprises, they began to realize that corporate social responsibility has a certain Based on information asymmetry theory, social responsibility theory and stakeholder theory, this article takes the listed companies of A share stock market as the sample to establish econometrical model to analyze the relation between the quantitative enterprise social responsibility and stock price crash risk. The measure of stock price crash risk comes from the previous research. The conclusions are drawn as follows: under controlling the variables of company information transparency and company size, enterprise social responsibility is negatively related to stock price crash risk; compared to non stated-owned enterprises, the fulfillment of enterprise social responsibility of non stated-owned enterprises performs better in reducing the stock price crash risk; the enterprises which focus on fulfilling social responsibility are less inclined to hide bad news.