The Study On The Effect Of Corporate Social Responsibility Disclosure On Financial Constraints

Chinese companies didn’t realize the concept of corporate social responsibility until 1890s.However,in recent years,some enterprises still have been irresponsible for the society,so encouraging Chinese firms to be involved in social responsibility activities is emergent.The majority of companies are faced with financing constraints which result from limited capital supply and information asymmetry.Chinese companies should think from the perspective of their own about how to improve financial performance,how to conduct a variety of activities appreciated by the investors,which is the fundamental way to ease financing constraints.Whether corporate social responsibility will ease the financing constraints,if so,whether market attention will intermediate this effect?This paper combines normative research method and empirical research method to investigate financing constraints from the perspective of CSR based on the information asymmetry theory,signaling theory,agency theory and EMH.In order to gain the empirical evidences of the impact of CSR on financing constraints,the logistic model is used to measure financing constraints and samples are from the SSE listed companies from 2010 to 2015.Then,the variable of market attention(divided into the analyst’s attention and media attention as two dimensions)is introduced into the empirical model to investigate whether high market attention enhances the impact of corporate social responsibility disclosure on financing constraints.The results show that:First,the social responsibility disclosing activities and improving the quality of CSR reports could solve the financing problems of enterprises,but compared with the disclosing CSR activities,the impact of the quality of CSR reports on financing constraints is relatively limited;Second,analyst’s attention dose not affect the relationship between corporate social responsibility information and financial constraints;Third,media attention only affect the relationship between CSR and financing constraints among the private companies.Based on the conclusions above,this paper puts forward many policy suggestions to encourage companies to disclose CSR informantion and then financial constraints are eased.