An Empirical Study On The Social Responsibility And Debt Cost Of Private Enterprises

The owner of China’s private enterprises, most of them are 60 and 70, many people did not receive higher education, through the low buy high sell, information is not equal,imitation cottage to seize market share. Some private enterprises boss even through bribery, a policy of "edge ball" and other bad means to earn income. Because the majority of private enterprise owners of the economic theory and there is no lack of knowledge, to learn relevant knowledge, but pay more attention to how to get more profits. With the aggravation of the market competition, the economic situation of increasingly severe, private enterprises are more likely to ignore the corporate social responsibility performance, resulting in a series of commercial fraud, lawlessness, environmental destruction and the lack of good faith and the breeding. For the current private enterprises and a thorny problem is financing, private enterprises want sustainable development, only rely on its own funds is not possible, and for private enterprises in our country’s credit discrimination often exists. This is based on the nature of the ownership of a special phenomenon in China’s financial system. Many private enterprises in the loan application process will face a higher threshold for loans, the loan difficulty is large, due to the presence of the above reasons, private enterprises can only through the financing cost higher commercial financing and private lending and other means to get the money.Therefore, the negative relationship between the study of the current private enterprises the cost of debt and corporate social responsibility, to verify whether the private enterprise can reduce the cost of corporate debt by improving their social responsibility level, to ease the financing difficulties to bring pressure, it is worthy of deep thinking and research. At the same time, this paper starts from the perspective of industry competition, the social responsibility of private enterprise performance impact on the cost of debt is because the industry market competition environment vary, hoping to promote the private enterprises realize the importance to fulfill their social responsibility, improve the social responsibility of the subjective initiative. And called for more enterprises to participate in the social responsibility action, thus enhancing the soft competitiveness of China’s private enterprises, promote the sustainable development of private enterprises, improve the level of social responsibility of enterprises in our country overall, which is of great significance for the construction of a harmonious society in China.From 2012 to 2014 in Shanghai and Shenzhen A shares of listed private enterprises as the object of study, to explore the impact of corporate social responsibility of listing Corporation in China’s private enterprises on the impact of the debt cost. This paper consistsof three parts, first through the relevant research at home and abroad, to analyze the possible relationship between social responsibility and the cost of debt between the degree of market competition, private enterprises in theory; followed by the conclusion had been developed,selection has a greater impact on the influence factors of as control variables study on the establishment of multiple linear on the degree of market competition, the private enterprise social responsibility and the cost of debt financing model, through SPSS software related statistical analysis of empirical data, verify the previously proposed hypothesis is established;finally draws the following conclusions:(1) The higher the degree of competition in the industry, the private enterprise society the higher the level of responsibility.(2) The private enterprise social responsibility performance better, the lower the cost of debt financing.(3) Compared to the low competitive industry, highly competitive industry of private enterprises and its social responsibility to reduce the cost of debt is more significant.In summary, in the fierce competition in the market, private enterprises will assume corporate social responsibility and business strategy combination is a important role for enterprises to improve the market competitiveness of enterprises and sustainable development.