Marketization Process,Social Responsibility Performance And Cost Of Equity Capital

With the continuous improvement of China's socialist market economy,the factors affecting the sustainable development of enterprises are no longer limited to financial profit.In recent years,the lack of social responsibility consciousness has caused irreparable losses to stakeholders and has negative impact on the long-term operation of the society.Therefore,social responsibility gradually moves towards public view.Regulatory authorities also promulgate relevant regulations to restrain and supervise corporate social responsibility(CSR)performance.The economic consequences of CSR performance have also become the focus of academic research.Since the 19 th CPC national congress,China has emphasized that the proportion of direct financing should be increased to maintain long-term development of the capital market.Under the policy background of deleveraging and cost reduction,the cost of equity plays a crucial role in the sustainable development of enterprises' business activities.Therefore,under current economic and institutional environment in China,whether the active performance of listed companies' social responsibilities can reduce the cost of equity capital and obtain financing advantages has become a major concern of enterprises themselves and regulators.Therefore,this paper focuses on the relationship between CSR performance and the cost of equity capital,exploring the influence of the former on the latter.Considering that there are still big differences in the current level of marketization in China,this paper conducts a deeper study on the relationship between the performance of social responsibility and the cost of equity capital from the perspective of the marketization process,and empirically tests whether CSR can effectively reduce the cost of equity in order to achieve the strategic goal.Based on stakeholder theory,resource-based theory,asymmetric information theory and signal transmission theory,this paper takes data of Shanghai and Shenzhen A-share listed companies from 2010 to 2018.Using empirical research,literature research and comparative research,combining with marketization process,study the effect of social responsibility performance on the cost of equity capital.This paper draws the following conclusions :(1)CSR performance has a negative impact on equity capital cost.That is,the better CSR performance,the lower equity capital cost.(2)The marketization process has a moderating effect on the relationship between the social responsibility performance and the cost of equity capital.That is,the influence is more significant in the samples with a higher marketization process.This paper expounds the influence of social responsibility performance on the cost of equity capital through theoretical analysis,further validates the research hypothesis by combining with empirical data,and makes an in-depth analysis of the regulating effect of marketization process.According to the above research conclusions,this paper gives relevant suggestions from the perspectives of enterprises,consumers and regulators,providing useful reference for the formulation and implementation of relevant policies on social responsibility and the improvement of internal governance mechanism of enterprises.