Research On The Impact Of Corporate Social Responsibility On Bond Financing Costs

IPO is an important way for enterprises to finance,according to Pecking Order Theory,enterprises should give priority to internal financing and debt financing,equity financing is the last,but because of our special economic status,we always depend on equity financing,coincidentally,during my paper time,the stock market downturn,which makes the "financing issue " even more difficult.Equity financing is more and more difficult,debt financing has become a very important tool.Debt financing includes two main aspects,one is to apply for a bank,it is known to be very difficult to success,small and medium enterprises is particularly "helpless";the second is the bond financing,through the issuance of corporate bonds,financing from social investors,costs are relatively small,and the risk is under control,and the control of the company will not be reduced,so this kind of way is also more and more popular.Bond financing,investor want to undertake a minimum investment risk and opportunity costs,to get greater returns,so,what the companies concern is to reduce the financing costs.Previous studies showed that corporate social responsibility and its disclosure have positive impact on many aspects of corporate reputation,financial performance and so on,this article would like to study whether the corporate social responsibility and its disclosure would reduce bonds financing costs.In this paper,theoretical analysis combined with the empirical test,use the statistics between 2010 and 2014 from the issuance of corporate bonds for the study,use the difference between the yield to maturity of bonds with the same period ? the same duration state bonds to measure the corporate bond financing costs,using social contribution per share to measure corporate social responsibility,whether the enterprise to disclose CSR report as a measure of corporate social responsibility disclosure,and added reasonably control variables,test impact of the two aspect of CSR to corporate bond financing costs.This study shows that I:if corporate social responsibility fulfill better,the bond financing costs lower,indicating that corporate social responsibility can significantly reduce the bond financing costs;II: corporate social responsibility information disclosure can significantly reduce the bond financing costs;in addition,this article test of different credit rating bonds group,test results show that :if the credit rating is better,its corporate social responsibility information disclosure impact on the cost of bond financing is more obvious,the credit rating of AAA(highest credit rating)bonds packet,corporate social responsibility and disclosure can significantly reduce bond financing costs,but for the credit rating does not reach AAA(highest credit rating)of other bond credit rating,reduce effect is not significant.The study have important theoretical and practical significance,give a new perspective of corporate social responsibility and bonds financing costs,and provide a reference for enterprises to effectively reduce financing costs,is good to the development of China's bond market,provide some reference to alleviate “ financing difficult”.