Study On The Effect Of Board Characteristic To Corporate Social Responsibility

The focus of this paper is on the relationship between the board characteristic and the Corporate Social Responsibility (hereafter CSR). The paper probes into the theoretical issues,including evolution of CSR and its combination with stakeholder theory,and into the empirical issues of CSR-board characteristic relationship.The research is in a financial perspective,adopts the research methodology for thought history,relies heavily on theoretical analysis and is supported by empirical evidences.The paper consists of three main parts,which are theoretical analysis, creat the index of Corporate Social Performance and empirical research.The research starts from an overview of theoretical frameworks for CSR and the stakeholder theory;then creat the index of Corporate Social Performance (CRP).finally the research surveys the empirical evidences on CSR-broad characteristic relationship.The article quotes non-financial institutions as examples, take the data of 2004 and 2005. The research analyzes the present condition of the listed company board in China. Then gives the experimental analyzes from the board characteristics and activies such as board size, the proportion of independent director, board meeting frequency and duality. The research adopt ordinary least squares model to analyze the relationship between the board characteristic and CSP.Results show the correlation of the proportion of independent director is negatively correlated with CSP; the correlation of duality and the firm performance is not definite; the size of the board and CSP is not definite; the frequency of the board meeting and CSP is not definite. The frequency of the shareholder meeting is positively correlated with CSP , and the result is significant. the frequency of the supervisor meeting is negatively correlated with firm performance, and the result is significant. These results demonstrate that the board system of listed firm is still imperfect.Practice shows there is a phenomenon of weak board.According to the above conclusions, this paper promote many suggestions to improve further proposes such as: improve and perfect the system of Independent Directors , improve the duality, enhance the efficiency of the supervisor meeting and standard the board size.