Corporate Social Responsibility And Stock Price Crash Risk

With the continuous development of the economy society,the public is paying more and more attention to corporate social responsibility activities.Corporate managers also pay more and more attention to the fulfillment and disclosure of corporate social responsibility.In the academic world,the research on social responsibility is hot,which many scholars study the relationship between corporate social responsibility and financing costs,corporate performance and so on.Judging from the current research,some scholars have focused their research on the relationship between corporate social responsibility and the stock market crash risk,but the conclusions of these research are different,and there has not yet been any research to investigate the moderating effects.In the reality,the impact of corporate social responsibility on the stock market crash risk will be affected by internal and external factors like the government connection and institutional environment.What roles do these factors play in this relationship are also worthy to discuss.Based on this,this paper not only discusses the relationship between social responsibility and the risk of stock market crash,but also discusses the moderating effects of government connection and institutional environment,which has far-reaching practical significance for the stable development of China’s market.This paper uses panel data from 9,307 samples of listed companies in China’s A-share market from 2013 to 2018 to regress.Based on the theoretical analysis,this article firstly explores the relationship between China’s corporate social responsibility and the stock market crash risk.Then,this paper sets up a model to find the relationship between the corporate social responsibility and the risk of stock market crash.Also,this paper adds government connection and institutional environment as the moderating variables to the model to test the existence of the moderating effect.Through the empirical research,this paper finds the conclusion that there is a negative correlation between corporate social responsibility and the risk of stock price crash.At the same time,government connection and institutional environment have the moderating effects in the relationship between corporate social responsibility and the stock price crash risk.According to the conclusions,this article puts forward relevant policy recommendations.On the one hand,enterprises should enhance their awareness of social responsibility,actively fulfill their social responsibilities and build a good relationship with the government.On the other hand,the government should strengthen and improve the construction of the market institution environment to create good market conditions for enterprise development.