Abstract
Taking Chinese A-share listed companies in Shanghai and Shenzhen Stock Exchanges from 2007 to 2018 as research samples, this paper studies the relationship between green corporation social responsibility (CSR) and financing cost of Chinese companies by means of moderating effect and multiple regression analysis. It is found that, for companies, the better the performance of green social responsibility, the lower the financing cost. However, it is also found that for companies with different pollution degrees and natures of property rights, the financing cost reduction effects due to green social responsibility are quite different. Compared with low-polluting companies, the financing cost reduction effect arisen by green CSR will be weakened for high-polluting companies. Compared with private companies, the financing cost reduction effect from green CSR will also be weakened for state-owned companies. To sum up, the research results of this paper show that there is a significant saving effect on financing cost for companies undertaking green CSR, and companies’ characteristics of pollution degree and property right can regulate the impact of green CSR on financing cost. The conclusion of this paper can encourage companies to take green social responsibility actively and reduce the cost of financing.
Highlights
In the past 20 years, corporation social responsibility (CSR) has become an increasingly important topic, and companies are required to take more and more social responsibility gradually [1]
When considering the green CSR behavior of companies comprehensively, it is found that the net value of green CSR behavior can significantly reduce the financing cost of companies
More scholars found before that, taking China’s high pollution listed companies in metallurgy, the chemical industry, and the oil industry as a sample, through the correlation regression verification of environmental indicators and stock price changes from 2007 to 2009, it is found that only company environmental responsibility information disclosure indicators are moderately positively correlated with stock price changes, while other environmental responsibility indicators are not correlated with stock price changes [55]
Summary
In the past 20 years, corporation social responsibility (CSR) has become an increasingly important topic, and companies are required to take more and more social responsibility gradually [1]. Based on the relevant data of China’s listed companies, this paper mainly completes two empirical tests: the first is to test whether companies actively undertaking green social responsibility can reduce their financing cost; and the second is, with the impact of green social responsibility, whether the cost of financing is different for companies with different natures. On the basis of the above studies, this paper takes Chinese A-share listed companies in the Shanghai and Shenzhen Stock Exchanges from 2007 to 2018 as research samples and mainly draws the following conclusions through the methods of moderating effect and Sustainability 2020, 12, 6238 multiple regression analysis: (1) The companies’ active fulfillment of green social responsibility can reduce financing cost to a certain extent. State-owned companies will have a weaker saving effect on financing cost of green CSR due to property right differences and soft budget constraints
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