Pledge Of Stock Rights, Legal Environment And Corporate Social Responsibility

As an innovative financing method,pledge of equity is characterized by strong flexibility,high efficiency,low cost,abundant capital and wide sources.It is widely used in The A-share market and is also one of the preferred financing channels for most enterprises.It is indeed a good way for enterprises to choose equity pledge financing,but there are also many hidden crises.When the stock market is depressed,the stock price will fall sharply under the influence of the whole market.The sharp decline in the stock price of an enterprise will trigger a chain reaction,making the equity value pledged by the company greatly shrink.The shares pledged by these booming enterprises will be forced to sell in the secondary market,and their share prices will plunge further,making the situation worse.Moreover,it is difficult for these enterprises to get out of the predicament in the future,and it is difficult for them to take into account the obligation to fulfill their social responsibilities.When an enterprise is unable to fulfill its corporate social responsibility or neglects to cut costs,it is necessary for the legislative and judicial departments to play a regulatory role and restrict unreasonable pledge of equity in order to better fulfill its corporate social responsibility.In December 2008,China Securities Regulatory Commission,Shanghai Stock Exchange and Shenzhen Stock Exchange jointly issued mandatory disclosure requirements on social responsibility reports of A-share listed companies.Since then,Chinese listed companies will have laws to follow to fulfill their social responsibilities.In equity pledge is widely applied in the a-share market background,this article is based on 544 listed companies in China from 2014 to 2017 panel data,using the regression model to investigate the proportion of equity pledge to fulfill the social responsibility of the enterprise level,and discusses the legal environment in the performance of equity pledge proportion influence enterprise relationship plays A role in regulating the social responsibilitylevel.Considering the indirect influence of equity pledge on corporate social responsibility,this paper further examines the effect mechanism of equity pledge ratio on corporate social responsibility performance.It is found that the proportion of corporate equity pledge has a significant negative impact on the CSR performance,which is more obvious in state-owned enterprises.Legal environment negative influence in the company equity pledge proportion relationship between enterprise to fulfill the social responsibility level plays a negative regulation role,namely high place in the legal environment,the company equity pledge proportion to fulfill the social responsibility of the enterprise level of negative effect is reduced,the adjustment effect in non-state enterprises act more obvious;Equity pledge affects enterprises’ performance of social responsibility through management behaviors such as information disclosure quality and earnings management.This study enriches the research literature on the influence of equity pledge on corporate social responsibility,and provides policy inspiration for the government on how to prevent and resolve the risks of equity pledge and strengthen the construction of corporate social responsibility.