Research In Influence Factors Of Social Contribution Value Per Share For The Listed Company

With the rapid economic development in China, the contradiction between theeconomic development and the environment and society also stands out gradually. Inthe recent decades, the government strengthens supervision by public opinion andpromotes the enterprises to carry out their CSR by means of improving policies andregulations. What’s more, due to the pressure of the global competition, theenterprises have also gradually realized the strategic significance of carrying out theCSR carefully for the enterprises’ sustainable development. Therefore, the socialresponsibility of the enterprises develops gradually in China. As the representatives ofexcellent enterprises in China, the listed companies need to set a good example for theenterprises to carry out the CSR carefully. From2008, the stock exchange inShenzhen and Shanghai issued a guide respectively that A-share listed companies arerequired to strengthen the revelation of the situation of CSR. Shanghai stock exchangealso made innovative attempt, putting forward a concept of” Social ContributionValue per Share”, which is a quantitative criteria of evaluating how the enterprisescarry out their CSR.This paper draws on the experience of the research on relativity between theenterprises’ CSR and their financial performance, and the evaluation report of theirCSR. This paper is based on the report about CSR revealed by91listed companies atShanghai stock exchange in2011, sifts88companies as the sample, and chooses6indicator systems of the internal management factors (SIZE, ROE, EPS) and theexternal factors (P/E, Total Market value, Industry). In this paper, the author is goingto analyze which factors will influence the Social Contribution Value per Sharerevealed by A-share listed companies by means of case studies, so that thestakeholders of the listed companies can better understand the connotation of “SocialContribution Value per Share” and arouse the investors’ awareness of SociallyResponsible Investment.Conclusions:1. The size (SIZE) and the basic earnings per share (EPS) are positive correlatedwith the Social Contribution Value per Share of the sample companies, i.e. the current Social Contribution Value per Share revealed by China’s A-share listed companies aremainly influenced by the internal management factors in the company.2. Price earning Ratio (P/E) is not positive correlated with the “SocialContribution Value per Share” of the sample companies, i.e. the current “SocialContribution Value per Share” by China’s A-share listed companies are not influencedby the external management factors in the company.3. Industry is not positive correlated with the Social Contribution Value per Shareof the sample companies, i.e. the current Social Contribution Value per Share revealedby China’s A-share listed companies lacks reflection of the industry differences.