Correlation Of Social Responsibility Information Disclosure Of Listed Companies And Stock Price

The theory of social responsibility originated in the early20th century, and hasnow been highly affirmed in western countries after nearly a century of continuousdevelopment and improvement. After the reform and opening up, the concept andtheory of corporate social responsibility was brought into our country. In recentyears, with the environmental deterioration, the degradation of products’ qualitiesand a series of vicious events occurred frequently in our country; CSR issues haveextensively aroused people’s concern, as well as the listed companies’ socialresponsibility information disclosure in China. As important social members, listedcompanies play a leading role in terms of social responsibility informationdisclosure. Despite of the fact that corporations’ taking social responsibility leads toan increase of expenses and a reduction of earnings, social responsibility can, inanother hand, transfer information to the society of companies’ operating in goodcondition. When such information being affirmed by the investors whose valuesaccord with it, the value of the company is supposed to increase.Based on the research of listed companies’ social responsibility informationdisclosure and stock price movements, this article finds out the correlation betweenthem, in order to promote listed companies’ commitment to corporate socialresponsibility, and help build a better atmosphere of social responsibilityinformation disclosure in China. This article is divided into six chapters from thecontent:The first chapter is the introduction that, on the basis of relevant theories,introduces the purpose, contents, methods of this study, as well as the review of thearticle about the domestic and foreign scholars research on the correlation betweenlisted companies’ social responsibility information disclosure and stock price. Thestudy of social responsibility in China started late, and the research is insufficient, which turns no unified conclusion drawn by related scholars. The author read a lot ofdocuments, books, some scholars to collect the existing research results. Hope thatthrough empirical research, this paper could give some enlightenment to studies onsocial responsibility information disclosure.The second chapter is the theoretical basis for this article, mainly expounds thesocial responsibility theory, stakeholder theory and efficiency market theory.The third chapter mainly introduces the overall situation of listed companies’performance of CSR in China. After introducing the development of relevant lawsand regulations on CSR information disclosure in our country, which tells thatChina’s relevant laws and regulations not perfect, this thesis illustrate the presentsituation of CSR information disclosure in China, and lists a series of analysisreasons that causes this situation. Then, this paper expounds the mechanism howsocial responsibility information disclosure impacts on stock price.The forth chapter puts forward the hypothesis of this article, and designs theindex system of the listed company social responsibility measurement. This paperrandomly selected425A Stock listed companies in Shanghai and Shenzhen assamples, of which the annuals and CSR reports from2010to2012been analyzedand researched, meanwhile, constructed a corresponding index system of listedcompanies’ social responsibility measurement.The fifth chapter is about the regression analysis of this paper. Descriptivestatistics on the sample companies’ related data were carried out in this chapter. Bythe use of regression analysis, empirical research on the correlation between listedcompanies’ social responsibility information disclosure and stock price was applied.The sixth chapter states the conclusion of this paper and some correspondingsuggestions to the problems in research process. On the basis of empirical analysis,this chapter firstly gives a conclusion that, nowadays in China, investors are notconcerned about whether the listed companies disclose their social responsibilityinformation or not, thus there’s no casual relationship between the listed companies’ social responsibility information disclosure and the stock price. Then, on the basis oftheoretical analysis and empirical research, combined with the development of CSRin our country, this chapter puts forward several suggestions on enhancing thedisclosure of listed companies’ social responsibility in China, as well as prospect ofthe future.