An Empirical Study Of The Relationship Between Corporate Social Resiponsibility And Cash Holding

In recent years,it is known that CSR has become increasingly important,therefore,the disclosure of CSR report obtains more attention.CSR includes such elements as environmental protection,social equity and economic growth,has a strong affinity with the expectations of stakeholders,stressing that enterprises should exceed the goal of maximizing their interests.Cash holdings is a significant part of corporate assets,meanwhile,its decision-making is an important part of corporate financial decision-making.This promotes the discussion that the disclosure of listed companies' CSR whether affects the cash holdings and how to affect the cash holdings if it affects.Thus,this paper will study the direct impact of CSR on cash holdings and the indirect effects of idiosyncratic risk,systemic risk and corporate governance on cash holdings.This paper will adopt theoretical and empirical analysis methods to analyze the relationship between CSR and cash holdings.The theory about the CSR and cash holding will describe based on the conclusion of overseas and domestic research,and the assumption of this paper will propose.After that,based on the expounding of the definition of variable,the model will design and the hypothesis testing will describe.And then,this paper will do the multiple linear regression and the multiple mediating effect test with bootstrapping.And we can draw conclusions that can be listed as follows: Firstly,the company managed well tend to hold more cash to take the flexible value of cash and to meet the investment chance later,and the cash holding amount has a positive influence to the systemic risk;Secondly,announcing the social responsibility decreases the idiosyncratic risk and systemic risk,owing to the face that the stakeholder's high social capital brings down the systematic risk,and the high loyalty of investor or consumer hold the systematic risk too;Lastly,announcing the corporate's social responsibility is a signal of the good management,and the agency theory about the enterprise social responsibility hold the idea that the powerful manager may strengthen the relationship with stakeholder with making CSR activity.The result suggests that CSR affects cash holdings positively via the beta channel.Studying the effects of CSR on cash holdings can enrich the relevant research and also have some reference for the decision-making of cash holding.