Researching On The Impact Of Corporate Social Responsibility Performance On Its Credit Risk

In recent years,the frequent occurrence of corporate debt defaults has aroused close attention to the credit risk of the company.As an important micro-participant and construction force in the market economy,companies play an important role in promoting economic growth,increasing employment,tax contribution,and building a social integrity system.The construction of social and market integrity is inseparable from the performance of corporate social responsibility.Enterprises with a sense of social responsibility have perfect and effective system guarantees in the aspects of employees' welfare,tax payment and social donation.At the same time,because the basic financial indicators of such enterprises are relatively healthy,and the operation and investment activities are carried out smoothly,they are highly recognized by investors in the market.Corporate credit indicators are good and their credit risk is relatively low.According to the statistics of CSR Report Substantive Analysis of China Securities 100 Index Component Stocks issued jointly by Business Dao Vertical and Horizontal Network and China Southern Weekend Corporate Social Responsibility Research Center,862 listed companies in the first half of 2018 issued the "Social Responsibility Report 2017" separately in the form of special reports,compared with 2.The 826 reports in 2017 showed a great growth.Although there is still a huge gap in the disclosure level of corporate social responsibility performance(CSR)reports,and there are many economic indicators,it shows that the awareness of corporate social responsibility in China is becoming stronger and stronger.While pursuing the development of enterprises,it also takes into account the interests of stakeholders.In view of the above analysis background and the credit status of enterprises can reflect the consciousness and behavior ability of enterprises to fulfill their social responsibility as a whole,so it is of great practical and social significance to study the impact of social responsibility performance on their credit risk.Based on the data available to the relevant enterprises and enterprises,this paper selects 900 enterprises,taking 2008-2017 as the sample period,to minimize the negative impact of time dimension and data integrity on the empirical conclusions of this paper.Through empirical research,the following main conclusions are drawn: there is a significant negative correlation between corporate credit risk and social responsibility performance(csr),a significant negative correlation with Tobin Q(q),a negative correlation with company growth,a significant negative correlation with company size,a significant positive correlation with lev,and assets and liabilities.There is a significant negative correlation between the rate of return(roa).There are two main innovations in this paper.One is the establishment of corporate social responsibility performance indicators.Firstly,it is necessary to standardize the data with excessive differences,then determine the coefficient matrix of each index according to the principal component method,and finally calculate the weight of each index according to the coefficient matrix,then construct the performance index of corporate social responsibility according to the weight,so that the index can objectively and truly reflect the performance of corporate social responsibility.Second,most scholars either use corporate bond spreads to measure the credit risk model,or choose the existing corporate financial indicators to simply measure,obviously this will cause errors in the results.Therefore,in this paper,according to the research theme of this paper,we use the Barcelona model to measure the credit risk of enterprises,and the indicators in the model are closely related to the theme in the selection,so that the final empirical conclusions more in line with the reality.