The Impact Of Political Connection And Disclosure Of Corporate Social Responsibility On Corporate Finance Constraints

Under the background of the accelerating process of China's marketization,private enterprises have gradually developed into the backbone force supporting sustained and rapid economic growth in China.The private economy creates a gross domestic product of about 60% of GDP.Despite this great achievement,The growth of private enterprises faces many challenges,of which the issue of financing constraints is the most prominent.From the perspective of social benefits,financing constraints not only hinder the survival and development of the enterprise itself,but also further reduce the efficiency of the capital market allocation and hinder the sustainable and healthy development of the society.Under China's not yet perfect market mechanism,it is particularly important to study the influencing factors of corporate financing constraints and provide channels for private listed companies to solve financing constraints.However,few literatures start from the institutional aspect to study the influencing factors of financing constraints.In view of this,this article starts from the two systems of political connection and corporate social responsibility information disclosure to study the impact of the system on financing constraints.This paper first reviews the research status on the basis of relevant domestic and foreign literature,and then based on the theories of rent-seeking theory,corporate social capital theory,information asymmetry theory and signal transmission theory,this paper analyzes the mechanisms of political connection and corporate social responsibility information disclosure affecting financial constraints and corporate social responsibility disclosure instead of political connection.Two aspects of the informal system of political connection and the official system of corporate social responsibility information disclosure are selected.They are studied separately on their impact on the private enterprise's financing constraints and study their influence on private enterprise financing constraints and corporate social responsibility information disclosure is to ease the political association of financing constraints play a substitute role.On the basis of relevant assumptions,this article uses the 2008-2015 China A-share private listed company as the initial research sample,and uses a two-way fixed effect model to study the constraints ofthe two systems of private enterprise political connection and corporate social responsibility information disclosure on corporate financing.Impact and the substitution of the two systems on the impact of corporate financing constraints.The results show that the formal system of political connection and corporate social responsibility information disclosure has a significant mitigation effect on the financing constraints of private enterprises,and the disclosure of corporate social responsibility information can substitute for the mitigation effect of the enterprise's political connections on the financing constraints of private enterprises.Moreover,it is found that the central and western enterprises are more prominent than the eastern enterprises on the impact of political connections on financing constraints.As far as the disclosure of social responsibility information is concerned,the eastern enterprises are more significant.Finally,on the basis of relevant conclusions,this paper puts forward two countermeasures and suggestions from the government and enterprises.