The Relationship Between Social Responsibility And Financial Performance Of Agriculture Listed Companies

Because agriculture is the basis of the national economy and play a very important role, agricultural enterprises has thus been given a more social expectations. As reform and open up of our country, the agricultural enterprises develop rapidly. While we all know the development of agricultural enterprises, there are many disappointments in this process. Some agricultural enterprises think that ignoring social responsibility can improve financial performance which makes the safety problem of agricultural products frequent occurrence. So the purpose of this study is to research if corporate social responsibility and financial performance of agricultural enterprises has relationship and if they have relationship, what the relationship is.This paper is based on the research result at home and abroad of relationship between social responsibility and corporate performance. After analyzing social responsibility theory and stakeholder theory, and the basic situation of agricultural listed companies, we choose the data of agricultural listed companies from2010to2011to establish a corporation social responsibility indicator system. First, the paper extracts common factors and calculates common factor score by factor analysis to analyze the fulfillment of agricultural listed companies. Then, we make a linear regression model to study the relationship between social responsibility and financial performance of the agricultural listed companies which uses the common factor score of social responsibility indicators in2011, the overall score of social responsibility indicators in2010, enterprise scale as independent variables, and uses financial performance indicator as dependent variable. The main conclusions of this thesis are as follows,1. Each year of agricultural listed companies’ social responsibility fulfillment is not very stable.2. The corporate social responsibility fulfillment of smaller agricultural listed companies is better than the larger ones.3. In addition to community social responsibility indicator this year of agricultural listed companies has a negative correlation relationship with financial performance, other social responsibility indicators this year, overall fulfillment of social responsibility of the previous year and the scale of the enterprises has positive correlation relationship with financial performance.According to the research results, this article suggests that agricultural enterprises should actively fulfill their social responsibility. Although the fulfillment of community social responsibility will reduce the short-term financial performance, fulfilling social responsibility for each stakeholder will improve corporate financial performance from the viewpoint of long-term development.