A Study On The Relationships Between Corporate Social Responsibility Disclosure Level And Financial Performance

In recent years, corporate social responsibility awareness gained widespread attention gradually at home and abroad, and the demand for social responsibility information of regulators, investors and other stakeholders is growing day by day. China's listed companies increase investment to fulfill their social responsibilities, at the same time; they are also active to improve the level of information disclosure. As the disclosure of social responsibility information belongs to voluntary disclosure of information, China's disclosure level of social responsibility information showed greater differences with the lack of relevant laws and regulations with compulsory requirement. Some listed companies with excellent quality and good performance have adopted voluntarily measures of information disclosure to highlight their competitive superiority, improve the quality of information disclosure, and to enhance investors' confidence in the company's future growth. Whether can the listed companies promote the company's financial performance through the improvement of the disclosure level of social responsibility information, and whether could company's previous financial performance impact the disclosure level of corporate social responsibility information? This paper attempts to answer these two questions and study the relationship between the disclosure level of social responsibility information and financial performance in order to provide reference for improving the quality of information disclosure and the value of the companies.From the company stakeholders' perspective, this paper paid focus on the relationship between the disclosure level of corporate social responsibility information and the company's financial performance. At first, the author listed the two major theoretical foundations of corporate social responsibility and corporate financial performance: corporate social responsibility thinking and stakeholders' theory. Then the author listed and analyzed the disclosure status of social responsibility information of China's listed companies. And then from the perspective of the stakeholders, this paper evaluated the disclosure level of social responsibility information of Chinese companies and tested the relationship between the disclosure level of social responsibility information and financial performance of on Chinese listed companies through relationship analysis and multiple regression analysis. The results showed that there was a significant positive correlation between the disclosure level of social responsibility information and the company's financial performance when measured by the overall growth rate and ROA in A-share listed companies of China's Shenzhen Stock Exchange. At the same time, the two companies features variable (company size and industry attributes) also affected the disclosure extent of social responsibility information of listed companies. Finally this paper gave some policy recommendations to improve the disclosure quality of social responsibility to information.