An Empirical Research On The Effect Of CSR To Financial Performance

With the deeply development of economic of the whole world, sustainable development gives corporate social responsibility(CSR) a new time meaning, and surges another wave of undertaking CSR. Because every corporate is an economic organization existents for profit, and seeking maximum of profit is the premise of existence. So whether corporate should undertake CSR, and how undertaking CSR can affect corporate financial performance(CFP), become the most important things for corporate. For this reason, this paper wants to answer this question by an empirical research on the effect of CSR to CFP.Firstly, based on predecessors'researches, this paper makes a retrospection of theoties of CSR, stakeholder which concerned in this paper, and the relationship between them.Secondly, after reading earlier researches concerning the relationship between CSR and CFP, this paper has summarized ways which these researches used, and some shortages of these researches.Thirdly, is the empirical part of this paper. Combining with characters of listed company, this paper has identified corporate social responsibility of every stakeholder, and given every stakeholder weight using carroll model. Because the information of listed company missing, this paper has mainly analysised CSR of stakeholders of corporation from six aspects, which contain shareholders, creditors, suppliers, customers, employees and government. Then, this paper constructs index system of CSR based on the accounting reports of listed company.Finally, this paper has picked up 1000 listed company, who disclosure their information fully from the year 2003 to year 2008, then has used ROA as index of financial performance.The empirical research has been done on the effect of CSR to CFP, based on this data.This paper has firstly used the way of correlation analysis to analysis relationship between CFP and CSR. On choosing control variables, diferrent with earlier researches, this paper has adopted hypothesis test and corralation analysis to make sure which one is a control variable. By doing so, this paper has made sure that scale and industry of company has effect on CFP, while ownership hasn't by hypothesis testing and correlation analysis. Besides, this paper has alse elicited that corporates of different scales and industries has different effects of CSR on CFP.