Research On The Interaction Between Corporate Social Responsibility And Financing Constraints

Corporate social responsibility(CSR)is a voluntary behavior,which not only reflects whether corporate attach importance to stakeholders,but also the capability and concept of the enterprise.In the case of financing constraints are generally faced with,it is important for companies to pass on profit signals to investors through social responsibility behaviors.And the company's responsible behavior to stakeholders is expected to bring more stable returns to investors,thus making it easier to obtain external financing.Investors expect this behavior will bring more stable income and external investment to the company.As a result,CSR behavior may lighten financial constraints in many ways.At the same time,a company is more willing to undertake CSR when facing with lower external financing pressure or liquidity constraint,which means more CSR capital inputs.On the contrary,companies will first cut their investment on short-term earnings such as CSR to save cash outflows and increase investment opportunities when faced with financing constraints.This in turn makes the company's financing constraints affect its social responsibility performance.In summary,there may be an interaction between CSR and financing constraints.In this paper,we take the sample of listed companies with corporate social responsibility reported in 2013-2016 that have been evaluated by RKS,and establish the regression equation to examine the interaction between the behavioral performance of the CSR and the quality of the report,as well as the difference of effects between different equity properties.The results show that the performance of CSR and the quality of information disclosure can reduce the degree of financing constraints.At the same time,we also find the degree of financial constraints faced by enterprises has a significant negative impact on the performance of CSR behavior,and the interaction between responsibility performance and financing constraints is more prominent in state-owned enterprises.