Research On The Impact Of CSR Performance On Insider Trading

China's capital market is at the stage of rapid development,but the occurrence of illegal activity such as insider trading has caused certain obstacles to the healthy development of capital market.Insider trading in the capital market makes insiders obtain excess returns,harms the interests of external investors,weakens the enthusiasm of external investors to participate in the market.It also increases the volatility of the stock market price and trading volume,and violates the regulation in the market which is Fairness,Impartiality and Disclosure.Although China has rigorously prohibited insider trading through legislation,the phenomenon of insider trading in the capital market has remained serious in recent years.Therefore,we need to explore more ways to supervise insider trading behaviors and weaken the opportunism of insiders.The academic community has already found that corporate social responsibility may be one of its influencing factors,but it lacks deeper empirical research results.In this case,this research empirically explores the impact of corporate social responsibility on insider trading.Based on data from Shanghai and Shenzhen A-share listed companies,this research examines the influencing factors of insider trading behaviors from 2013 to 2017.The research come to the conclusion that:(1)The performance of corporate social responsibility has a restraining effect on insider trading.(2)Classify corporate social responsibility,environment responsibility and social contribution responsibility in the first-level indicators of corporate social responsibility have a significant inhibiting effect on insider trading.(3)The impact of corporate social responsibility on insider trading varies under different property rights.Corporate social responsibility activities have a significant inhibiting effect on insider trading only in non-state enterprises;in the first-level indicators of corporate social responsibility,social contribution responsibility activities have a significant inhibiting effect on insider trading,which is only under the condition of non-state enterprises.The main contributions of this research are as follows:Firstly,current academic researches on insider trading mostly focus on the legal perspective and traditional corporate governance.This research finds that corporate social responsibility activity has a significant inhibiting effect on insider trading,and provides empirical conclusions for expanding research on insider trading governance.Secondly,we analyze the composition of corporate social responsibility and the impact of different types of responsibilities on insider trading behavior.Look into the transmission mechanism of corporate social responsibility performance on insider trading.Thirdly,under our country's characteristic system,the motivation between state-owned enterprises and non-state enterprises in fulfilling corporate social responsibility is quite different,as well as the quality of internal control and the emphasis of external supervision.Therefore,we analyze and test the differences in the impact of corporate social responsibility performance on insider trading.