Research On Corporate Social Responsibility,Financing Constraints And Cash Holdings

Cash is an important asset to maintain the flexibility of business operation.Besides meeting the normal operation of the enterprise,it can also prevent the capital demand,which is caused by the uncertain risk that may appear in the future.Cash resources are the cornerstone to ensure the steady development of enterprises.At the same time,the level of cash holdings also affects the efficiency of enterprise resource allocation.Too high level cash holdings will cause too high cost of cash holdings,which will reduce cash value in use,while too low level cash holdings will affect the normal operation of enterprises,bring financial risks to enterprises.Therefore,it is an important business decision to guarantee reasonable level of cash holdings.However,the level of enterprise cash holdings is affected by many factors.Under the influence of different factors,enterprises will have different tendency of cash holdings,or increase the cash holdings,or reduce the cash holdings,so as to maintain a relatively suitable level of cash holdings and ensure the rational allocation of enterprise resources.Financing constraints is an important factor that affects the cash holdings of enterprises,and enterprises may choose to increase their internal cash holdings level because of the obstruction of external financing to meet the future capital demand.CSR performance as a positive corporate behavior,which can promote the corporate image,gain public goodwill and trust.So,can the performance of CSR alleviate corporate financing constraints?Will the business reduce its cash holdings after that?And then does it Indirectly affect the level of cash holdings? Based on this,this paper takes the CSR performance as the starting point,selects all A-share listed companies from 2010 to 2018 as a sample,combines theoretical analysis and empirical research to explore the influence of CSR on cash holdings level.At the same time,financing constraints is considered as an possible intermediate factor in this process,so there is going to verify its possible mediating role.Based on the ownership structure,this paper also analyzes the different performance of the influence mechanism of CSR under different ownership structure.This paper is divided into five chapters.The first chapter is the introduction,mainly expounds the research background and significance of this paper,summarizes the domesticand foreign relevant paper on the CSR and the level of cash holding,and reviews it,and then expounds the research ideas,methods,innovations and characteristics of this paper.The second chapter is to define the related concept and the theoretical basis,one is to define the concept of CSR,cash holdings and financing constraints,the other is to explain the theory that related to this study,to provide theoretical basis for the research of this paper.The third chapter is the status quo description,the theory analysis and the research hypothesis,this chapter first carries the statistical analysis on the status quo of CSR performance and cash holdings of China's listed companies,then discusses the influence mechanism of CSR performance on the cash holdings level,and then proposes this paper research hypothesis on that basis.The fourth chapter is the empirical test,which provides data support for the research hypothesis in this paper from the perspective of quantification,including sample selection,model design,descriptive statistics,regression analysis and robustness test.The fifth chapter includes conclutions and policy proposals.The research found that:(1)There is a significant negative correlation between CSR and cash holdings.Good CSR performance reduces the amount of corporate cash holdings.(2)The negative correlation between CSR and financing constraints is significant.Good CSR performance is helpful to alleviate the financing constraints.(3)Financing constraints plays a completely mediating effect in the relationship between CSR and cash holding level,which indicates that CSR reduces the amount of cash holdings by alleviating the financing constraints.(4)Compared with the non-state-owned enterprises,the negative correlation between CSR and cash holdings is not significant for state-owned enterprises.there is no the mediating effect of financing constraints under the condition.The main contributions of this paper are:(1)Through the analysis of the influence path of CSR performance on cash holding level,the mechanism of CSR performance is clarified,the scope of influencing factors of cash holding level is broadened,and further incremental evidence is added to the relevant paper in this field.(2)Because the CSR perpormance reduces the level of cash holdings by improving the situation of financing constraints,it plays a certain role in the allocation of enterprise resources.Therefore,we can advocate enterprises to actively carry out CSR construction,improve the quality of CSR performance,optimize the market mechanism,and give full play to the strategic role of resource allocation of CSR performance,so as to enhance theefficiency of the allocation of resources in the whole market.At the same time,the different performance of CSR information effect under different ownership structure further verifies the necessity and practical significance of promoting the reform of mixed ownership actively.