Research On Corporate Social Responsibility Product Market Competition And Idiosyncratic Risk

As emerging economies,China’s economy has developed rapidly in recent years,at the same time Chinese enterprises caused by the problem of social responsibility is becoming more and more serious,such as food safety,employee rights infringement events,the social responsibility of the growing problem has caused the public and the government attaches great importance to them.However,the research on corporate social responsibility tends to directly analyze the impact of social responsibility performance on financial performance or shareholder wealth,but in practice,enterprise managers don’t realize the strategic significance of corporate social responsibility performance,and the direct consequences of this phenomenon is in the process of enterprise management decision tend to ignore the strategic value of social responsibility.Under the background of economic globalization,industry competition is the inevitable trend of global economic development,and product market competition as an effective external governance mechanism,can effectively reduce the information asymmetry problem,basic value to investors’ investment behavior and the company have a positive impact,based on this,the product market competition to the trait of the stock risk of the enterprise have an impact.In addition,there is very little literature that puts corporate social responsibility,product market competition and trait risk in the same research framework.In view of this,this article selects 2011—2016 as sample range in our country,the a-share listed companies in Shanghai and Shenzhen two city as the research object,try to explore the enterprise bear the social responsibility of the influence of the stock risk trait,use adjustment effect model further inspection product market competition the adjustment effect of impact between them,and on this basis,further analysis of the nature of property rights and the influence of R&D spending on both.Is different from previous research,this paper not only analyzes the external market environment,product market competition,and based on Chinese special system background,from the Angle of property rights heterogeneity and R&D spending comprehensive analysis of the regulating effect of both,get some reliable,meaningful research conclusion.The results show that:(1)good social responsibility can effectively reduce the risk of stock idiosyncrasy.Good social responsibility is to establish rapport with stakeholders,and harmonious relationship between stakeholders can not only reduce the elasticity of demand of consumers,but also can cushion the negative impact on the enterprise income financial crisis,the enhancement enterprise’s ability to recover from the crisis,can bring a lot of convenience,which can reduce the risk of enterprise.(2)Positive social responsibility can significantly reduce the trait of the stock risk enterprise,at the same time,as the product market competition is increasingly fierce,positive social responsibility of enterprise stock trait risk inhibitory effect will be strengthened.At the same time,this study also proves that the positive social responsibility of enterprises is a signal transmission mechanism.Specifically,with the increasing of market competition,enterprises in order to survive and development,and tend to adopt differentiation strategy,and positive signals to the outside world rapidly,in order to attract the attention and support,the stakeholders,reduce the trait of corporate credit risk,and shows good social responsibility is a kind of mechanism.(3)Compared with state-owned enterprises,the suppression effect of social responsibilities on stock idiosyncratic risks will be more prominent in non-state enterprises.The results of this paper show that non-state enterprises are better than state-owned enterprises in the performance of social responsibility.(4)The enterprise research and development spending can effectively reduce the risk of enterprise stock trait,and with the augmentation of the investment in research and development,the social responsibility of the risk of stock trait inhibition also can increase accordingly.Thus it can be seen that corporate social responsibility and R&D investment have synergistic effect in reducing the characteristic risk of stock.In addition,the research conclusion of this article to existing literature also play a supplementary role,provides external investors and creditors with practical significance for reference,for the relevant government departments to formulate relevant policies.