The Impact Of Corporate Governance On Corporate Social Responsibility Disclosure

With the rapid development of China’s economy, the Chinese enterprises have been grownvery fast as well. But there are also many irresponsible behaviors of some companies exposed tothe public which are harmful to the society and make the public worry about these adverseeffects. People start to get focused on the enterprises’ social responsibility performance. Theyhope that the companies can shoulder their social responsibilities which are equal to theireconomic power and market status. Some government departments begin to issue guidelines andpolicies which encourage the enterprises to disclose the social responsibilities actively. Corporategovernance was firstly designed to resolve principal–agent relationships. But as the inside andoutside environment of the companies change, the scholar at home and abroad come up with akind of corporate governance which bases on the stakeholders theory and this will havesignificant impacts on the corporate social responsibilities. So, it is maybe a creative method todo the research of corporate social responsibility from the corporate governance perspectiveFirstly, this article analyzes in theory how five elements of company governance influencethe corporate social responsibility separately and the five elements are state-owned stocks’ ratio,independent director’s proportion, supervisor board meeting’s number and senior executivecompensation. Secondly, the author defines the index of corporate social responsibilitydisclosure and establishes the regression analysis model of the index and the five corporategovernance elements. Thirdly, the author puts the data which are gained from155listed firms inmanufacturing industry of2012by random drawing into the model and the empirical conclusionshows that there are positive correlations between state-owned stocks’ ratio, independentdirector’s proportion, supervisor board meeting’s number and corporate social responsibilitydisclosure separately. The senior executive compensation does not have significant relationshipwith corporate social responsibility disclosure. In the last part, this article gives some suggestionsabout how to enhance the corporate social responsibility disclosure by improving corporategovernance according to the research conclusions above.