Research On The Relationship Between Corporate Social Responsibility And Investment Efficiency

On one hand,with the continuous progress of social development,increasing economic benefits is no longer the only goal pursued by society.Regulators have gradually come up with new goals such as "feed back to the society","corporate social responsibility",and "environment-friendly".Listed companies participate in corporate social responsibility activities due to various reasons such as regulatory requirements or their own demands.On the other hand,investment activities are important parts of the production and operation of an enterprise.How to invest in suitable projects and how to obtain the maximum investment returns is vital to the development of an enterprise.This article focuses on the impact of corporate social responsibility on investment efficiency,and further analyzes the changes in the extent of this impact under different corporate entity characteristics.The investment efficiency is measured by the sensitivity of investment to Q.The enterprises are grouped according to the degree of the agency problem,the strength of stakeholders,and the resources owned by the enterprise.And further analyzes how corporate social responsibility activities will affect corporate financing behavior and future corporate performance.This article focuses on four main issues:(1)how corporate social responsibility affects the investment efficiency of enterprises;(2)how the two factors corporate agency costs and the strength of the company’s stakeholders impact this disturbance;(3)discuss the enterprises in groups by the different funds they have,first discuss the companies separately based on whether they have sufficient funds and compare the different groups Then analyze the company’s access to funds from both internal and external aspects.From the external point of view,how corporate social responsibility will affect the company’s external financing,and then analyze the impact of investment on sensitivity of endogenous financing;(4)Finally,analyze how the impact of corporate social responsibility activities on investment efficiency will affect corporate performance.The study found that:(1)corporate social responsibility will reduce the sensitivity of investment to Q;(2)such disturbances are more serious in companies with incomplete executive incentive mechanisms and larger stakeholder strength;(3)this kind of disturbance will be relatively weak for companies with abundant capital,and the existence of corporate social responsibility will reduce the sensitivity of the company’s external financing to Q.In contrast,the investment of the company will increase the sensitivity to the company’s internal financing;(4)The disturbance effect on the investment efficiency of the enterprise due to the existence of corporate social responsibility activities will eventually have a negative impact on the performance of the enterprise.