Research On The Impact Of Financing Constraints On Corporate Social Responsibility

Corporate social responsibility has been highly concerned by people all over the world and undertaking social responsibility has become an important issue.The government and the public also put forward higher requirements for corporate social responsibility.Although in recent years,the community have repeatedly emphasized the importance of corporate social responsibility,the ultimate performance of the company has been unsatisfactory.As a long-term strategic activity of a company,corporate social responsibility needs to spend a lot of money.Therefore,the problem of financing constraints not only hinders the development of enterprises,but may also be an important internal factor restricting enterprises to undertake social responsibility.Considering that,it is an urgent problem for the government and enterprises to solve how to mitigate the impact of financing constraints on corporate social responsibility.This paper,by reasonably defining corporate social responsibility and financing constraints,uses a variety of empirical methods to study the relationship between the two under different conditions,so as to provide reference for improving the performance of corporate social responsibility in China.This paper takes the companies that disclosed corporate social responsibility reports in all ashare listed companies from 2010 to 2017 as samples,and adopts the research method combining literature analysis,normative analysis and empirical analysis.Firstly,relevant theories and literatures of corporate social responsibility are sorted out,so as to draw out the influence mechanism of financing constraint on corporate social responsibility.Secondly,it analyzes the status quo and existing problems of corporate social responsibility in China from a realistic perspective,highlighting the objective facts and practical significance of this study.Thirdly,by referring to relevant literatures to determine the measurement index of CSR and financing constraint,this paper constructs a regression model to empirically analyze the impact of financing constraint on CSR,and further analyzes the cumulative effect of financing constraint and the effect of corporate financing constraint on CSR under different ownership nature.Finally,with the level of financial development as the threshold variable,the double threshold model is used to analyze the impact of financing constraints on corporate social responsibility under different levels of financial development.Results of this paper show that:(1)Financing constraints have significant negative impact on corporate social responsibility.(2)Corporate performance has a significant positive adjustment effect on the negative correlation between financing constraints and corporate social responsibility.(3)Enterprises with different equity properties have different effects on their social responsibility.Compared with non-state-owned enterprises,the problem of financing constraints of state-owned enterprises has a greater impact on their social responsibility.(4)Financing constraints have cumulative effects and long-term financing constraints have greater impact on corporate social responsibility.(5)External financial development level has threshold effect on the relationship between financing constraints and corporate social responsibility.Significant improvement of regional financial development level can alleviate the negative impact of financing constraints on corporate social responsibility.