The Effect Of Social Responsibility Information Disclosure On Corporate Bond Pricing

In the policy context of establishing a multi-level capital market and regulating the development of bond market,corporate bonds in China have been standardized and developed rapidly.As one of the core elements of corporate bonds,bond pricing has become the focus for issuers and investors in practice,and also the research hotspot for scholars in theoretical research.Among many perspectives,issuers'information disclosure,especially the financial information disclosure has been studied more and earlier.Currently,corporate social responsibility(CSR)activities and CSR information disclosure have gotten more and more attention.CSR information,as non-financial information,can it affect the bond pricing?At the same time,will the relationship between CSR information disclosure and corporate bond pricing be affected by other factors?This paper attempts to explain the usefulness of CSR information in corporate bond pricing and its influencing factors.Based on the above context,this paper sets corporate bonds issued in the 2011?2015 by A-share listed company,which are disclosed in the iFinD database,as the research sample.Based on the rent-seeking theory,legitimacy theory and so on,this paper uses the method of OLS to study the impact of CSR information disclosure on corporate bonds pricing.This paper finds that there is a significant negative correlation between CSR information disclosure and corporate bonds pricing,that is,the higher the quality of CSR information is,the lower the bond pricing is.Furthermore,it further analyzes the impacts of property nature and bond credit rating on the relationship between CSR information disclosure and corporate bond pricing.The results show that the negative relationship between CSR information disclosure and bond pricing is more significant when the issuer is state-owned enterprise or the credit rating is higher.What's more,in the robustness test,we found that even if using RKS CSR ratings measuring the CSR,or the OLS is replaced by the Multilevel Linear Model(HLM),or re-filtering the sample and so on,the previous research conclusion is also valid.Additionally,bond default events are broken out currently,this paper further examines the relationship between CSR information disclosure and bond pricing before and after bond default,and the impacts of CSR information disclosure and bond contracts.The results show that there is a different relationship between the two before and after bond default,and CSR information disclosure can affect bond contracts.The conclusion of this study extends the usefulness of CSR information in the bond market.Finally,based on the results of this paper,relevant suggestions are put forward.