Study On The Relationship Between Corporate Social Responsibility Information Disclosure And Market Reaction

In recent years, our country’s economy have made great achievements. Enterprise as a basic cell of national economy grow fastly, but brought many environmental and social issues, such as kunshan explosion accident, fuxi expired meat events, smog pollution, Beijing "cough", "crystal shrimp" events, etc. This series of events make the corporate social responsibility attracted many attentions of the public. Government and other regulatory authorities have formulated a series of laws and regulations, policies, and actively promote the listing corporation in China to fulfill their social responsibilities. Since 2006, the relevant departments issued continuously notice advocates of corporate social responsibility. In the promotion of the market and the government, more and more listing corporation to disclose social responsibility reports, and the numbers are increasing each year. In the tide of the enterprise to fulfill the social responsibility, scholars have also carried out research on corporate social responsibility from the theoretical and empirical aspects, and achieved many research results.This paper study on the relationship between corporation social responsibility report, voluntary disclosure of social responsibility report, the quality of social responsibility report and the excess rate of return. The sample is non-ST-listed companies in the Shenzhen Stock Exchange which have published Annual Report in the year of 2011-2012, and chooses the paired samples for each Sample Firms. Using the method of event study and multivariate linear regression model, we test the relationship between the explained variable CAR and explanatory variables social responsibility report, the voluntary of social responsibility report, the quality of social responsibility report. The aim of the paper is to explore whether there is a positive correlation between social responsibility report and CAR, and whether the voluntary of social responsibility report would enhance this correlation, and whether there is a positive correlation between the quality of social responsibility report and CAR.The empirical results show that corporate social responsibility report and CAR are positively correlated, if the enterprise publishes social responsibility reports voluntarily, such a positive correlation will be pronounced, but the result doesn’t support the hypothesis, and the quality of corporate social responsibility report and CAR are positively correlated.The main contribution of this paper is that we have explored the market reaction caused by the disclosure of social responsibility information under such hot social responsibility climate. This paper would provide a theoretical and empirical support to the study of corporate social responsibility, and enhance the confidence of the corporations to publish social responsibility reports. In addition, it raises some enlightening comments and suggestions on the development of government and other regulatory departments on corporate social responsibility, to make China’s capital market more standardized.