| In recent years, with the rapid development of China’s economy, some social issues,such as environment destruction, ecological deterioration, safety and health problem andother social problems, are emerging. The lack of social responsibility not only affects thelong-term development of the enterprise itself, but also threatened the social harmony andstability. In this paper, the research on relationship between the fulfillment of CSR andfinancial performance will provide evidence to encourage enterprises to take the socialresponsibilities. However, because of different inherent property rights of state-ownedenterprises and private enterprises, social responsibility driving factors for them are verydifferent which results in different effects in financial performance. Therefore, based onthe nature of property rights, this paper further analyses different effects on the financialperformance of state-owned enterprises and private enterprises.Firstly, this paper summarizes relevant researches to define the content of CSR. Then,according to stakeholder theory, contract theory, transaction cost theory and signaltransmission theory, the author analyses how the fulfillment of CSR affects corporatefinancial performance, while according to the property rights theory, different effects onfinancial performance of enterprises in different nature are disclosed. Assumptions aremade based on the above theoretical analysis. Thirdly, by empirical test of the full samples,the results show that: the fulfillment of CSR of the various stakeholders has significant andpositive impact on financial performance, and the impact on financial performance ofprivate enterprises is bigger than that of state-owned enterprises. Finally, according to theconclusions of this paper, some suggestions are proposed in order to promote Chineseenterprises to actively fulfill their social responsibilities and achieve sustainabledevelopment. |
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