Research On Delisting Regulation's Influence On Corporate Social Responsibility

In recent years,as China's economy develops rapidly,enterprise management efficiency has boosted sharply,and government,business circles and academic circles have reached broad consensus in terms of proactive performance of social responsibility upon self-development.The listed companies as important components of Chinese characteristic socialism market economy,takes the initiative in the targeted poverty alleviation,the construction of "The Belt and Road" and the prevention and control of novel coronavirus pneumonia,and proactively serves national strategy and economic and social development.So they are the subjects of performing social responsibilities.But compared with some developed countries,China's listed companies are weak in performing their social responsibilities as a whole,and low in degree of participation.So,the top-level design is urgent from the macro system level in order to promote and guide the listed companies to perform social responsibilities.Delisting regulation as one indispensable link in China's multilevel capital market system,plays an important role in improving market vitality and deepening structural reform in financial supply side,and influences the behavior decision of listed companies all the time.In 2012,Shanghai Stock Exchange and Shenzhen Stock Exchange perfected the delisting regulation on the original basis so that delisting indicators are stricter and diversified,and the delisting rules tend to be uniform as a whole.It has a profound impact on the capital market.The role of delisting regulation in governing listed companies' social responsibilities is researched to facilitate listed companies to enhance social responsibilities,and implement a new development concept,so as to promote the healthy and ordered development of China's capital market,and make masses share the bonus of economic development.Based on current existing literature,scholars seemingly pay more attention to the internal characteristics of company,such as the relationship among financial performance,governance structure and social responsibility performance,and few scholars verify its influence on social responsibility level of listed companies from the perspective of macroscopic system environment of listed companies.Besides,delisting regulation's governance role has not involved in the corporate social responsibility.Based on the principal-agent theory,stakeholder theory,signal transmission theory and institutional change theory,the internal relationship between delisting regulation and listed companies' social responsibilities and their mechanism of action are deeply analyzed,and theoretical framework is constructed from the perspective of external macro system environment to argue their logical relationships and discuss the role of delisting regulation in governing listed companies' social responsibilities.The perfected delisting regulation launched by Shanghai Stock Exchange and Shenzhen Stock Exchange in 2012 is deemed as quasi natural experiment,and the data of Shanghai and Shenzhen A-share listed companies in China in 2010-2018 are adopted as samples.Propensity score matching is utilized to alleviate the selectivity bias of samples,and double difference method is adopted to control the endogenous problem for the empirical test of the internal logic relationship between delisting regulation and listed companies' social responsibilities and their influence mechanism,with the following conclusions through empirical research:(1)Delisting regulation generates good governance effect,and the performance level of listed companies' social responsibilities is significantly enhanced due to influence;(2)In combination with several detailed indicators of delisting regulation,we find that net profits,net assets and operating income standards play a good governance role and promote listed companies in performing social responsibilities better;(3)Compared with the past,the delisting regulation significantly enhances the media attention of influenced listed companies,promotes the influenced listed companies to improve profitability and alleviates their principal-agent problem.Delisting regulation mainly influences performance level of listed companies' social responsibilities through three channels;(4)Heterogeneity analysis results show that the delisting regulation can play a better governance effect in terms of the promotion degree of listed companies' social responsibilities in Eastern coastal areas,non-state-owned enterprises and companies with high marketization,high independence of Board of Director and high shareholding of institutional investors.Based on the above research results,the following suggestions are proposed in supervision institutions,listed companies and other stakeholders:(1)From the perspective of supervision institutions,the reform of delisting regulation shall insist the diverse,systematic and elaborative direction to further perfect delisting standard,organically combine the internal government regulation and external media supervision mechanism and guide listed companies to establish the concept of contributing to society;(2)From the perspective of listed companies,companies shall undertake more social responsibilities upon operation and development,including optimization of internal governance mechanism,comprehensive consideration of benefits of all parties,exhibition of their own good image,and transformation from passive performance of social responsibilities to proactive deed;(3)From the perspective of other stakeholders,the value of company's non-financial information shall be concerned to promote the establishment of stimulation and restriction system for listed companies to perform social responsibilities,thus maximizing the overall benefits of all parties.The research on the governance effect of delisting regulation is expanded to enrich the research achievements of influence factors of corporate social responsibility and provide the experimental evidence for the reform practice of China's delisting regulation.