Research On The Relationship Between Impression Of CSR Report And Cost Of Equity Capital

In recent years,investors and other stakeholders pay more attention to the information of listed companies.In addition to financial reports,CSR reports,as an important part of non-financial information disclosure,has attracted more and more attention from investors.The cost of equity capital is the lowest rate of return required by investors.This paper studies the influence of impression management of CSR reports on the cost of equity capital,and studies the economic consequences of impression management of CSR reports from the perspective of shareholders and investors.Accounting conservatism reduces the degree of information asymmetry and inhibits the impression management of CSR reports.This paper studies the moderation effect of accounting conservatism on the relationship between impression management of CSR reports and the cost of equity capital,which provides new evidence for the governance function of accounting conservatism on impression management of CSR Reports.The paper selects the A-share listed companies that disclose CSR reports from 2012 to2016 as a sample to study the impact of impression management of CSR report on the cost of equity capital.Then test the moderation effect of accounting conservatism on the relationship between the two party.The results show that the impression management of CSR report has a significant negative impact on the cost of equity capital.That means the higher impression management of CSR reports,the lower cost of equity capital.Accounting conservatism has a significant moderation effect on the negative impact of impression management of CSR reports on the cost of equity capital.That is to say,when considering the moderation effect of accounting conservatism,the negative correlation between impression management of CSR reports and the cost of equity capital is no longer signficant.Previous studies on CSR reports mainly focused on influencing factors and economic consequences.This paper studies the economic consequences of impression management behavior in CSR reports,which provides new ideas for the follow-up study of CSR reports.At the same time,the paper verifies the moderating effect of accounting conservatism on the relationship between impression management of CSR reports and cost of equity capital.Itproves that accounting conservatism has governance effect on impression management of CSR reports.This paper studies the impact of impression management of CSR reports on the cost of equity capital from the perspective of investors and other stakeholders,and provides a new perspective for the study of the economic consequences of impression management of CSR reports.At the same time,this paper also provides strong evidence for the inhibition of accounting conservatism on impression management of CSR reports,and provides some reference for standardizing the disclosure of social responsibility information and improving the quality of CSR reports.