Debt Financing, Social Responsibility and Firm Performance

Abstract

This paper selects A-share listed companies in Shanghai and Shenzhen from 2015 to 2019 as research samples, explores the relationship between debt financing, social responsibility and corporate performance from two aspects of theoretical analysis and empirical hypothesis, and uses empirical methods to verify the moderating effect of corporate social responsibility on debt financing and corporate performance. The results show that: first, debt financing is negatively correlated with corporate performance; Secondly, enterprises that actively undertake social responsibility have lower debt financing capital, and assume social responsibility plays a significant moderating role between debt financing and enterprise performance. Thirdly, corporate social responsibility is negatively related to debt financing. Corporate active social responsibility can promote the reduction of debt ratio and the improvement of corporate performance. Based on the above research results, the following suggestions are put forward: first, enterprises should strengthen the use of funds and actively assume social responsibilities; Second, government departments should strengthen policy incentives for enterprises to bear social responsibility; Third, government departments push enterprises to increase their direct financing capacity.