A Research Of Institutional Investor And Corporate Social Responsibility

As the socialism with Chinese characteristics entering a new era,China’s economic development level has been further improved.However,the booming economics has also brought about some public issues,such as child abuse in RYB kindergartens,the scandal of Changsheng Bio-tech vaccine and the Scallop disaster on the Zhangzi Island.These events hit the morality bottom and reveal the lack of social responsibility among Chinese enterprises.And they have aroused the close attention of the public and urged the government to attach importance to the improvement of relevant regulations.Due to the late awareness of corporate social responsibility,there is a lack of effective regulatory constraints and consciousness of entrepreneurs’ social duties.It is necessary to study the influence mechanism of improving social responsibility.Through literature review and theoretical analysis,this paper suggests that the investigation of institutional investors is conducive to improving the level of corporate social responsibility.First,institutional investors’ research helps to reduce information asymmetry,enhance supervision over management and external governance,and provide a good environment for the implementation of corporate social responsibility.Second,through reputation mechanism,institutional investors can act as information intermediaries of the capital market to supervise listed companies to fulfill their social responsibility obligations.Last but not least,on-site inspections have innate advantages to investigate and disclose the authenticity of social responsibility levels of corporates,and this obligation can be effectively supervised and guided.In order to test the above hypothesis,this paper collects the data of the listed companies in Shenzhen Stock Exchange from 2013 to 2017,including three independent variables,the number of institutional investigations,the number of research institutions,and the number of people surveyed.By means of three dimensions of financial data and catastrophe progression,the dependent variables,the corporate social contribution,was analyzed by statistical analysis and multiple linear regression analysis.Based on theoretical analysis and empirical test,this paper draws the following conclusions:(i)Institutional investors’ field research can significantly improve the level of corporate social responsibility.(ii)Compared with companies with good information environment,institutional research more effectively enhance social responsibility of companies in poor information environment.(iii)The participation of high-reputation research institutions can better enhance corporate social responsibility than ordinary research institutions.To this end,this paper proposes the following policy recommendations:(i)Encourage institutional investors to conduct on-the-spot investigations,actively transmit information,and act as information intermediaries;(ii)Improve the information disclosure system of field research and further improve the Interactive Easy Website and related systems for improving information disclosure timeliness and information integrity;(iii)Establish a corporate social responsibility legal system and improve the social responsibility information disclosure system;(iv)Strengthen internal corporate governance and build an efficient internal control system.The innovations of this paper are:(i)broadening the perspective of research on the factors affecting corporate social responsibility;(ii)broadening the research on the impact of institutional investors on capital markets;and(iii)providing policy references for improving corporate social responsibility.However,the paper still has the following shortcomings:(i)Since the Interactive Easy Website of the Shenzhen Stock Exchange started to operate in 2012,the sample interval is from 2013 to 2017.Thus,the data is limited,and the adequacy of the empirical analysis conclusions of this paper is still to be considered.(ii)The research behavior is measured by the number of institutional investigations,the number of institutions,and the number of people surveyed,without further discussing the impact of specific research content on corporate social responsibility.(iii)Because there are plenty of influential factors,the chosen explanatory variables cannot cover all of the possibility.