Corporate Social Responsibility Report And Cost Of Equity Capital

Since the United Nations issued the "Global Agreement",the public’s attention to corporate social responsibility has been increasing,and its importance is self-evident.Social responsibility,from the inside,requires enterprises to protect the rights and interests of employees;from the outside,it is required to play a leading role in the social and economic environment.Therefore,enterprises began to actively fulfill their social responsibilities and disclose them.The main feedback place is the capital market.However,as China’s social responsibility has just started,the relevant system is not perfect,and China’s capital market is not mature,so the motivation and social responsibility of social responsibility disclosure will have important research significance with the capital market.Throughout the study of scholars at home and abroad,the focus is on whether companies disclose social responsibility reports,whether disclosure information is voluntary,whether they are attestation,disclosure of social responsibility reports on the financial performance of enterprises,and the internal motivations that affect corporate disclosure of social responsibility.The more important equity capital cost research in the financial concept is less,and the research results have not been consistently concluded.In addition,combined with the results of many scholars,it is found that disclosure of social responsibility information can cover up to some extent the corporate default behavior or divert public attention.However,China’s economy is currently in a transitional period,the marketization development process is very uneven,and the government control and legal environment are quite different.Therefore,this paper wants to cut through the external perspective-marketization process and study the quality of social responsibility report on the company’s equity capital.The impact of cost and further explore the heterogeneity of its effects under different property rights.This paper selects the A-share listed companies in Shenzhen and Shanghai stock markets from 2012 to 2016 as the research samples.The conclusions are as follows: 1.There is a non-linear relationship between social responsibility report and equity capital cost.When the social responsibility report score is less than 22.66,improving the quality of social responsibility report can significantly reduce the cost of equity capital;when the score of social responsibility report is between 22.66 and 77.68,the quality of social responsibility report can also reduce the cost of equity capital,but reduce the effect.When the score is greater than 77.68,the quality of social responsibility report can no longer significantly reduce the cost of equity capital.2.In areas with high marketization,the less government intervention,the more perfect the legal system,the high-quality social responsibility report can reduce the cost of equity capital of enterprises;and the high-quality social responsibility report issued by non-state-owned enterprises can significantly reduce the cost of equity capital..The research in this paper enriches the theoretical and empirical research of social responsibility,opens up new financing channels for enterprises with financial difficulties,and reminds all stakeholders to pay attention to the quantity and quality of corporate social responsibility implementation.I hope the government can improve the social responsibility system and related The law establishes a reasonable system to achieve sustainable development for the entire society.