Research On The Relationship Between Corporate Social Responsibility And Bond Credit Spread

Debt financing is an important way of enterprise financing.Due to the late start of the bond market in China, the development of the bond market is not mature, and the way of issuing bonds has not played a powerful role.The scale of bond financing in foreign markets is greater than equity financing. With the development of the bond market in our country, the research on the bond becomes more and more important.Bond financing has its own unique advantages.Strengthening the management of China’s bond market is of great significance to enterprises, investors and the whole market economy.In recent years, China’s economy has made rapid development, the enterprise is facing more and more pressure of competition. the community is also increasingly high expectations of enterprises.The strategy of maximizing shareholder’s interests is not applicable to enterprises.While seeking development,enterprises should take into account the interests of stakeholders, such as the environment,employees, consumers, communities and so on.Actively fulfill social responsibility for the long-term development of enterprises is essential.The main research and innovation of this paper is to analyze the relationship between debt financing cost and corporate social responsibility from the perspective of bonds and this paper takes the credit spread of bonds as the proxy variable of bond financing cost.Using stakeholder theory to explore the impact of social responsibility and social responsibility on bond credit spreads.At the same time, the relationship between social responsibility and bond credit spreads is also considered.In addition, this paper analyzes the mechanism of social responsibility affecting the bond credit spreads, and further improves the research content.The conclusions of this paper are as follows: Enterprises to actively fulfill their social responsibility disclosure can reduce the bond credit spreads, and the five aspects of social responsibility (environment, employees, consumers, communities and other stakeholders)have a significant negative correlation with the credit spread.The impact of social responsibility on bond credit spreads is more obvious in state-owned enterprises.In addition,social responsibility can reduce the bond credit spreads by reducing the level of information asymmetry between markets.