An Empirical Research On Corporate Social Responsibility And Financial Performance

China proposed the development of Strategic Emerging Industries in 2009, and classified the high-end equipment manufacturing as one of the seven strategic emerging industries. The government began to attach great attention and vigorously support to the development of the industry, then provided a favorable external environment. It brings us intelligent, informational and convenient products and improves our lives during the development of high-end equipment manufacturing. Of course, the people give increasing expects for it. But in the course of the prosperity and development of high-end equipment manufacturing, it still can’t get rid of the problems of traditional manufacturing development, such as the issues of environment, security, law, reputation and so on, these problems bring negative impacts on the society and reflects the current situation of corporate social responsibility. ISO26000 promoted corporate social responsibility to organization social responsibility, and raised that social responsibility is the key to achieve sustainable development of our society. Today demands for social responsibility increases highly, so what kind of impact does corporate social responsibility have on financial performance is a matter of great concern to the business community.The main purpose of this paper is to explore the correlation between corporate social responsibility and financial performance of high-end equipment manufacturing, then to enable the industry to fully understand the importance of corporate social responsibility and the impact on financial performance. Firstly, on the basic of reading a great deal of literature in home and abroad, the paper conducted a review about the relationship between corporate social responsibility and financial performance, the evaluation index of corporate social responsibility to prominent the focus and difficulty of this paper. Then the paper elaborated the theoretical foundation of corporate social responsibility to support the purpose of the paper-stakeholder theory, corporate social responsibility theory, transaction costs and contract theory. Combing these three theories with the characteristics of high-end equipment manufacturing industry, the author determined the specific content of the industry as follows:shareholders, employees, creditors, suppliers, consumers, the government and charity. Finally the paper proposed the hypothesis on theoretical analysis and selected 144 high-end equipment manufacturing listed companies that listed before 2010, the study period is from 2010 to 2012. Then the author made the regression analysis of the correlation between current corporate social responsibility and current financial performance firstly; then made a three-year panel data analysis in considering time factors; at last, expecting to give a more comprehensive study, the author made regression analysis between the current corporate social responsibility and financial performance of the next period.The results show that:the current responsibility of high-end equipment manufacturing enterprises for the corporate stakeholder impacts the current financial performance in different ways, and the extent of the impact is not uniform. The regression analysis of panel data gives a more favorable result comparing with the cross-sectional data. The corporate responsibilities for shareholders, creditors, supplies, the government, charities are related to financial performance positively, the corporate responsibilities for employees and consumers have negative correlation with financial performance. In the lag phase of the regression analysis, the result shows that the responsibilities for stakeholders also have positive influence to the financial performance of the next period. It warns that the corporate should pay attention to the continuity of corporate social responsibility.