How Does The Market Punish The Lack Of Corporate Social Responsibility?

In recent years,China’s economic boom has also brought a series of social problems.The lack of corporate social responsibility has become the focus of everyone’s attention.As the micro-cells of the market economy,enterprises determine the quality and vitality of the macro-economy;investors are the key link in the relationship between the lack of corporate social responsibility and market response.When an enterprise suffers from a lack of social responsibility,how will investors be affected,and how will the market punish the defaulting enterprise? Through the research in this article,understanding the mechanism and methods of penalizing defaulting companies in the market will help investors to make self-diagnosis and rational decision-making,and it will also help the positive regulation of the capital market and the promulgation and implementation of related regulatory policies.Actively fulfill corporate social responsibility.The research case of this paper is two failure incidents and one responsible incident of PetroChina.The imprint theory is introduced to analyze the market response from the perspective of investors.From the perspective of punishment intensity and length,the paper explores the market response of the lack of corporate social responsibility.At the same time,combined with NVivo 11.0,the core code of the stock bar comment on related events was obtained to obtain the attitude of investors.Finally,based on the perspective of investor imprints,a model and attribution analysis are constructed to explore how the market punishes the lack of corporate social responsibility.The study found that: when a company defaults,the market will punish the company by falling stock prices;the market will punish the latter in a similar default event;and,when a company that repeatedly defaults is responsible,The market will show an "inaction" attitude towards the company.The research conclusions of this article are as follows:(1)When an enterprise defaults,the market will give negative feedback to the enterprise to punish the enterprise,and this process will stimulate investors to leave a "sign".(2)When companies default again and again,the investor’s "imprint" combined with the message of "the company is again in default" will cause investors to have negative emotions of disappointment,leading to increased penalties for companies.(3)In the context of multiple corporate defaults,investor “imprint” combined with “corporate responsible information” will cause investors to question the responsible behavior,thereby showing the market “inaction”,allowing the company to be "Irresponsible" assumes "current responsibility".(4)In addition to the above effects,the investor’s "sign of default" will also reduce investors’ willingness to invest,satisfaction with the stock market,and promote the implementation of relevant laws and regulations that regulate the enterprise.