Study On The Influence Of CSR To Public Conlpany Financial Perfmance

With the development of China’s economy, a large number of companies with good economic performance have grown up. Meanwhile, these companies’social responsibility performance attracts increasing attention. Especially in recent years, charity donation, as the main form of social responsibility performance, is attracting more and more attention from companies and the public. The Western academia has researched for corporate social responsibility for a very long time. A rich number of case studies generally show that there is a positive relationship between corporate social responsibility (CSR) performance and corporate financial performance (CFP). Compared to Western countries, China’s market economy started late, and so did Chinese companies. The concern for CSR and the study for the relationship between CSR and CFP are still at the initial stage. From the narrow concept of corporate social performance, or the public welfare, this paper researched for the CSR-CFP relationship based on the empirical data.Firstly we used the overall model to analyze the CSR-CFP relationship based on a panel data which included the data of 2183 companies in China’A-share market from 2003 to 2012. Secondly, we analyzed the factors which may influence the decision of companies’ donation. Finally, we researched for the influence of different factors on the CSR-CFP relationship through group regression and difference test.Our results show that corporate donation has a significantly positive impact on the financial performance. But we fail to get a consistent conclusion on the analysis of factors which may influence companies’ donation. In addition, for companies with better financial performance, lower debt levels, longer time of existence, ample cash flow and non-state control of enterprises, the positive relationship between charity donation and CFP is much stronger. What’s more, the differences stemmed from these factors are statistically significant.