Research On The Influence Of Corporate Social Responsibility Disclosure On Government Subsidies

Under the background of transitional economy in China,the development of economy has been strongly interfered by government,the government controls the resources which is essential to the development of enterprises.Therefore,companies are often keen to establish a good relationship with the government to pursue possible access to government resources.Recently,corporate social responsibility(CSR)disclo-sure attracts attention in our country.Since 2009,China Securities Regulatory Commission requested listed companies of specific sectors in stock market mandatory disclosure social responsibility report,and encourage other listed companies voluntary disclosure social responsibility information,and this means a strong government intervention exists.Under this background,we should fully consider the institutional environment in corporate social responsibility study.This paper try to find the relationship between corporate social responsibility disclosure and government subsidies that companies obtained under the institutional ethics perspective.We beli-eve that the corporate social responsibility disclosure can not only decline informati-on asymmetry between companies and government,but also transmit a positive signal,reflect the CSR fulfillment and legal compliance,so that can acquire good reputation in the market.Many of the social responsibility that the enterprise undertake is in fact plays a complementary role to the government function,which is beneficial to the recognition and affirmation of the government.As a result,CSR disclosure can enhanced the ability of obtaining more government resources.This paper obtained study samples from the listed companies from A-share in the period of 2010-2015 and use the statistics of Rankins CSR Ratings(RKS)to analyze the effects of companies' social responsibility information disclosure to the amount of subsidies that companies obtained.The empirical results show that companies send a positive signal to government through social responsibility disclosure so that they can get more government subsidies.Also we find that there is an "inverted U" relationship between government subsidies and enterprise social responsibility disclosure level,private small and medium-sized enterprise could get more subsidies through the improvement of information disclosure quality.Further more,we found that the effect will be more obvious in private enterprises than state-owned enterprises.Finally,we propose some relevant policy recommendations based on the result.