Does the Quality of CSR Information Disclosure Affect the Speed of Capital Structure Adjustment?—Evidence from Chinese Listed Companies

Yao Ziyang

doi:10.22158/rem.v4n4p200

Abstract

This paper takes the balanced panel data of 376 A-share listed companies in 2010-2016 as a sample, and makes the quality of Corporate Social Responsibility (CSR) information disclosure as the research entry point. Based on the two-stage method, this paper tests the relationship between the quality of CSR information disclosure and the speed of capital structure adjustment of Chinese listed companies by using the difference-GMM. Empirical research shows that the higher the quality of CSR information disclosure, the faster the rate of capital structure adjustment. However, the speed of capital structure adjustment of non-state-owned enterprises is more sensitive to the quality of CSR information disclosure than that of state-owned enterprises.

Highlights

This paper takes the balanced panel data of 376 A-share listed companies in 2010-2016 as a sample, and makes the quality of Corporate Social Responsibility (CSR) information disclosure as the research entry point
The speed of capital structure adjustment of non-state-owned enterprises is more sensitive to the quality of CSR information disclosure than that of state-owned enterprises
Research Conclusions and Deficiencies The research of this paper shows that the quality of CSR information disclosure will affect the speed of capital structure adjustment

Summary

Dynamic Adjustment Model of Capital Structure

With the development of capital structure and related theories, the dynamic adjustment model of capital structure has been quite perfect. As most scholars have done, this paper refers to Hovakimian et al (2004), and set the following criteria for a dynamic adjustment model of the capital structure. In formula (1), , represents the capital structure of the enterprise at the end of the period;. ∗ , represents the target capital structure of the enterprise at the end of the period; , represents the speed of adjustment of the capital structure; and , represents the stochastic disturbance. In this model, the main focus is on the speed of adjustment. 3.2 Fitting Model of Target Capital Structure. Represents the macro-economic index of the period; , represents the characteristic index of the enterprise in the period; , represents the stochastic disturbance

Model of the Speed of Capital Structure Adjustment

Regression Model Setting

Findings

Robustness Check