An Empirical Study On Corporate Social Responsibility And Financial Performance

In recent years, with the deterioration of the global environment and a series of social issues triggered from the development of enterprises, corporate social responsibility issues gradually aroused people's concern. But business is still an economic orgnization in essence. How corporate social responsibility impact financial performance? What is the mechanism of this impact? These issues can not be evaded, and which are also the main thrust in this paper.Firstly, this paper recall the academics at home and abroad in recent years for the research of the relationship between social responsibility and financial performance, and point that the previous study in the use of mathematical tools and clarify social responsibility and financial performance on the logical link have yet to be further explored.Secondly, on the basis of recalled the theory of stakeholders, this paper classifies different stakeholders of enterprises in the market, then based on the framework of the flow of market value, this paper analysis the different stakeholders acts of supply and demand for social responsibility in the relevant market, to build logical link and theoretical hypothetical between social responsibility and financial performance.Finally, in order to verify the correctness of the theory, this paper use mathematical tools of multiple linear regression and panel data to empirical data analysis on the Shanghai and Shenzhen listed company's data. This paper also use the case of empirical methods for Baosteel to the implementation of social responsibility Reviews.Empirical data show that results:From the correlation between the two, the correlation between the current corporate social responsibility and current financial performance is more visible than the correlation between the current corporate social responsibility and financial performance of the latter part. And the longer the time between the two, the correlation is weaker; most variable of corporate social responsibility are positively correlated to the financial performance.Taken the effects of reunification, in a longer period, the enterprises fulfill their social responsibility has a positive impact on enhancing its financial performance.Finally, both the results of the analysis of data and the analysis or conclusions of the case support the theoretical assumption of market mechanism.