Research On The Influence Of CSR On Inefficient Investment

Investment is one of the primary impetus to promote the economic growth.It not only relates to the microeconomic growth of country,but also is the key factor for the survival and development of micro-enterprises.It is vital to achieve the goal of maximize value and assets accretion for enterprise.However,lots of scholars found that inefficient investment follows the high growth of investment,and the problem of inefficient investment,which contains under-investment and over-investment,is ubiquitous in China.This thesis bases on the CSR and modern company investment,puts CSR and inefficient investment in the same framework to research the influence of investment by current period CSR and lag period CSR.The results show that:the current period CSR does not correlate with over-investment,and can leads to the under-investment.Furthermore,the CSR of lag one and lag two can significantly reduce the over-investment,and can also faintly reduce the under-investment.Hence,CSR can efficiently relieve the inefficient investment to improve the investment efficiency,and the governance effect is significantly hysteretic;this thesis also studies on the mechanism of inefficient investment influenced by CSR.The results show that the CSR not only can reduce under-investment caused by financing constraints,and can inhibit the under-investment caused by agency conflict;the existing research shows that political connection(PC)is related to the inefficient investment.This thesis further studies on the moderating effect of CSR,which can regulate the relationship between PC and inefficient investment.The results show that CSR can alleviate the relationship between PC and inefficient investment,reduce the over-investment caused by PC,and the governance effect is also significantly hysteretic.The results of this thesis have enriched the research of inefficient investment and CSR,On the one hand,it is hopeful to inhibit the problem of inefficient investment and optimize the efficiency of investment by CSR.On the other hand,the efficiency of investment provides an empirical evidence for governance effect of CSR,that has strategic significance for fulfilling CSR of enterprise.The results of this thesis have enriched the research of inefficient investment and CSR.On the one hand,it is hopeful to inhibit the problem of inefficient investment and optimize the efficiency of investment by CSR.On the other hand,the efficiency of investment provides an empirical evidence for governance effect of CSR,that has strategic significance for fulfilling CSR of enterprise.