In the background of a number of food safety problems in China, the fulfillment of social responsibilities in the food industry has become the focus of attention, and the cost of equity capital is an important factor affecting corporate equity financing. The academic community has begun to pay attention to whether the fulfillment of corporation social responsibilities will have an impact on the cost of equity capital. This paper takes 37 A-share listed food companies in Shanghai and Shenzhen stock exchanges that released corporation social responsibility reports from 2010 to 2022 as the research objects, constructing relevant model and using internal control as the adjusting variable to study the relationship between corporation social responsibility disclosure and the cost of equity capital. Empirical results show that there is a negative correlation between the corporation social responsibility disclosures and the cost of equity capital, and internal control can inhibit the increase in the cost of equity capital caused by the decline in the quality of corporation social responsibility disclosures. Finally, this paper puts forward some suggestions: Improving corporation social responsibility information disclosure standards; Establishing a corporation social responsibility reward and punishment mechanism; Strengthening corporate internal control.

Lihui Liu, Bo Li, Qiong Huang, Yuhua Kang. Impact of Food Corporation Social Responsibility Information Disclosure on the Cost of Equity Capital—Taking Internal Control as the Regulating Variable. Academic Journal of Business & Management (2024) Vol. 6, Issue 5: 191-198. https://doi.org/10.25236/AJBM.2024.060526.

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