Political Connections, Corporate Social Responsibility And Financing Constraints

Under the special background of China’s transitional economy,the problem of "financing difficulties" restricts the development of enterprises.This paper use theoretical analysis and empirical test,selected from 2012 to 2014 rankins disclosure of social responsibility rating of the listed company as the research object,using principal component analysis method to measure the financing constraint index,and from the enterprise internal factors(political association and social responsibility)and external factors(Regional Financial Development),comprehensive analysis of influence corporate social responsibility and political connections on the degree of financing constraint.This study shows that: first,the establishment of a political association and corporate social responsibility can alleviate the financing constraints effect,and the effect in non state-owned enterprises is more obvious;second,political association of enterprises financing constraints the extent of regional differences exist,in the developed areas,enterprises through the establishment of political related relief should be less than the financial underdeveloped areas;third,good corporate social responsibility,the establishment of a political association sometimes will weaken the effects to fulfill the social responsibility of financing constraints,and there is no political association of enterprises,by improving the social responsibility quality can significantly reduce financing constraints.According to the research results,this paper puts forward the following suggestions to the enterprises and relevant departments: first,to establish a reasonable political association;second,to fulfill the importance of social responsibility;third,to a reasonable choice of financing strategy;fourth,to regulate market order,improve relevant laws and regulations.It is worth noting that,in view of the negative impact of government political connections on social responsibility,the enterprises with political connections should also strengthen the supervision of social responsibility.It has very important theoretical and practical significance of the research,opened up a new perspective of influence between political connections and corporate social responsibility and financial constraints,and for enterprises to effectively reduce financing constraints and provides a reference,is conducive to the development of China’s financial market,providing some reference for the enterprises to ease the financing problem.