Research On Political Connections,Corporate Social Responsibility Information Disclosure And Investment Efficiency

Inefficient investment is a common problem in Chinese enterprises.In response to this,the "13th Five-Year"plan explicitly proposed the development goal of maintaining high-speed economic development and improving investment efficiency and enterprise efficiency.Regulating investment behavior and improving investment efficiency have become practical issues for the promotion of enterprises and macroeconomic development.Studies have shown that information asymmetry and agent risks caused by proxy conflicts are the main causes of low investment efficiency.On the other side,with the rapid development in economy,the social problems of security,ecology and human rights become more serious.As the main participant of market economic activities,enterprises need to take social responsibilities.And corporate social responsibility disclosure is an important way for public to know and supervise enterprises to take social responsibility.Based on the signal transmission effect and supervision and restriction of corporate social responsibility information disclosure,this paper studies the impact of corporate social responsibility information disclosure on investment efficiency.This article is based on the signaling effect and supervision function of corporate social responsibility information disclosure.Besides,combining the national conditions of our country,based on the two sides of political connections,the relationship between political association and investment efficiency is studied.At last,the article introduces the cross-multiplying item of corporate social responsibility information disclosure and political connections to examine whether the existence of political connections will have an impact on the relationship between corporate social responsibility information disclosure and investment efficiency.This paper chooses A-share listed companies from 2012 to 2016 as the main research object,based on information asymmetry theory,principal-agent theory,stakeholder theory,free cash flow theory,signal transmission theory and rent-seeking theory,separately makes empirical tests of corporate social responsibility information disclosure and political connections each have impacts on investment efficiency,as well as the effect of both on investment efficiency.The results show that:(1)Corporate social responsibility information disclosure can improve the investment efficiency of enterprises.The higher the quality of corporate social responsibility information disclosure is,the more enterprises'over-investment can be controlled,and the more enterprises'under-investment can be reduced.(2)The existence of political connections will aggravate the over-investment of enterprises;but it can also ease the investment of enterprises.(3)After the introduction of the cross-multiplying item of corporate social responsibility information disclosure and political connections,it finds that the political connections will weaken the repression caused by corporate social responsibility information disclosure on over-investment.Meanwhile,political connections also weaken the alleviated effect on under-investment of corporate social responsibility information disclosure.According to the above-mentioned conclusion,the paper gives some advice:strengthen the effect of the corporate social responsibility information disclosure for the improving of investment efficiency,weaken the political connections of enterprises,and promote market-based legalization.This study meets the needs of China's current economic development stage,provides empirical basis for the issuance of relevant disclosure normative documents,and provides a reference for promoting the transformation of government and enterprise development concepts.