Foreign Ownership, Corporate Social Responsibility And Firm’s Value

Since Chinese securities market opening to the outside world, foreign capital entered in the Chinese stock market gradually.In recent years the phenomenon on foreign ownership of Chinese non-renewable resources listing Corporation have become increasingly prominent, while there are few researches on its possible impact. The non-renewable resource is a national strategic resource, such enterprises should take more social responsibility and pay more attention to further increasing the value of the company.In this paper, we make coal, nonferrous metal, oil three non-renewable resources as the breakthrough point of the research of listed companies,Through expanding the existing corporate social responsibility evaluation system, Quantify the corporate social responsibility as a comparable index. this paper selects the2006-2011Chinese non-renewable resources listing Corporation data as a sample, uses SYS-GMM dynamic panel estimation and random-effects generalized least squares and other measurement methods, firstly studies on the influence of foreign ownership for these companies on fulfilling the social responsibility of the enterprise and furthermore, its influence on enterprise value.We obtain the following conclusions:Foreign ownership of Chinese non-renewable resources listing companies has no positive impact on fulfilling the corporate social responsibility of those companies, and non-Hong Kong, Macao, Taiwan foreign ownerships reduces the corporate social responsibility performance level of non-renewable resources listing companies significantly. At the same time, foreign ownership will damage the enterprise value of non-renewable resources companies, the damage is also mainly reflected in the non-Hong Kong, Macao, Taiwan foreign shareholding companies. Accordingly, this paper presents the corresponding policy recommendations.