Research On The Impact Of Corporate Social Responsibility On Financing Constraints

Under the background of the reform of the supply front,CSR in China has been the concern of many listed companies,many companies take part in social responsibility and disclose the relevant information to shape a good corporate image and get the needed social resources,thus enhancing the core competitiveness of the companies.However,due to Chinese special capital environment and wrong information both on the supply and demand of funds,the financing constraints are the general problems that our business confront,which not only affects the decision of the future development of enterprises,also restricts the long-term market value of enterprises.That the listed company how to obtain external financing,outside capital providers how to reasonable judge the development potential of the companies and how to provide the resources which are required for companies development after weighing the risks and benefits are important issues which domestic and overseas scholars explore.In this paper,through the empirical study of 2011-2013 Chinese A-share listing companies,find that companies which have better corporate social responsibility performance,the degree of financing constraints will be significantly reduced.In view of the listed company social responsibility can reduce the degree of information asymmetry indirectly and transfer to a market of good corporate reputation,so this paper starts from the perspective of information asymmetry,combines the domestic and foreign research status and research methods,summarizes previous financing constraint model and corporate social responsibility index,to explore the influence of corporate social responsibility on financing constraints.Empirical results show that: first,at present,the awareness of Chinese companies on corporate social responsibility has been strengthened and the score has been increased continuously,but the overall level is still low;secondly,the corporate social responsibility and financial constraint has a certain relevance,good performance of social responsibility can help ease the financing constraints faced by the enterprise;at the same time,the empirical results also show that when the content of social responsibility of enterprises is different,the corresponding function of alleviating financing constraints is also different;meanwhile,the role of easing financing constraints by corporate social responsibility in enterprises of different nature and different performance are significant different.In non-state owned enterprises,the role of CSR performance in mitigating financing constraints is more pronounced.In addition,the CSR performance to ease the effects of corporate finance constraints,respectively,in good financial performance of the company has been strengthened.In this paper,based on the study of social responsibility not only provides a new way to alleviate the financing constraints,but also enriches the research on the economic consequences of corporate social responsibility.According to the conclusion of this study,good corporate social responsibility performance is an important factor to ease the financing constraints of the listing corporation.Therefore,this paper finally suggests that the listing companies can enhance their ability and walk out the dilemma of financing constraints by improving the awareness on corporate social responsibility,strengthening cultural construction and perfect the corresponding supervision mechanism.In addition,this paper also expect to establish a sound financing evaluation index and evaluation system construction,to broaden the financing channels for the listing companies and comprehensive evaluation of its solvency and investment value,which can further improve the efficiency of capital market allocation.