Empirical Study Of Corporate Social Responsibility Performance And Financial Performance

Over the years, the companies maximized profits so as to realize shareholders’wealth maximization as their goal. Driven by this target, some enterprises expanded productions blindly and pursued profits one-sided to maximized shareholders’wealth. However, when the companies making wealth for shareholders, they ignored the fulfillment of other stakeholders’responsibility, bring so much harm to other stakeholders and then triggered a series of social problems. Accompanied by the occurrence of violations such as "Poison capsule","Mengniu Pure Milk containing carcinogens","Shuanghui thin fine" and so on, the fulfillment of corporate social responsibility has become the focus of attention of various stakeholders.In2009, five ministries jointly issued "Implementation Guidelines for Enterprise Internal Control", making a specification of social responsibility as an application guideline, which provides a new topic for the social responsibility. I defined the contents of corporate social responsibility and build a set of indicators system of corporate social responsibility performance, using the contract theory, transaction cost theory and Stakeholder theory. Selecting Shanghai Stock Exchange A-share listed company2008-2010years of data for samples from the view of the general sample and branch line of industries, I try to study the relationship of the corporate social responsibility performance and the corporate value.Innovations of this paper are:firstly, the author defined the corporate social responsibility performance and drawn article assumption from the view of contract theory, transaction cost theory and stakeholder theory, which provided a new perspective for us to make the further study of social responsibility accounting. Secondly, the author design models considering the current social responsibility and pre-social responsibility affecting the financial performance. On basis of the regression analysis of the overall sample, the regression analysis of branch line of industries is to determine whether there is a distinct influence to financial performance between different industries when they fulfill their social responsibilities.This paper is organized as follows:The first part is introduction. This part introduced the research background and significance, research methods and essay structure of the article.The second part is literature review. I review the domestic and international literature from the view of the definition and measurement of social responsibility performance, measure of financial performance and the relationship between social responsibility and financial performance. At last I evaluate the existing literature.The third part is theoretical analysis and research hypotheses of the relationship of corporate social responsibility performance and financial performance. This part exposit the theoretical basis of this article systematically-the transaction cost theory, contract theory, stakeholder theory firstly. Secondly, it defined the relationship between performance and financial performance of the corporate social responsibility, come to study hypothesis, and then laid the foundation for the variable design.The fourth part is study design. Firstly, considering the disclosure status of the social responsibility of listed companies in China, as well as the availability of data, I design a realistic evaluation of social responsibility and financial performance evaluation. Secondly, I build models on the basis of research hypotheses and variable design from the previous chapter. Thirdly, I described the sample selection and data sources for this article.The fifth part is empirical Analysis. The first empirical analysis is the company’s current social responsibility performance impact on financial performance. The second empirical analysis is the previous year and the first two years of social responsibility performance impact on the current financial performance. In the regression analysis, the contents are variable descriptive statistics and regression analysis. The last contents in this part are stringent robustness test of the model by replacing the financial performance indicators and adding different control variables.The sixth part is research findings and policy recommendations. These recommendations are aimed to promote Chinese enterprises to fulfill their social responsibilities actively. At last this article points out the research innovation and shortcoming.