Study Of The Influence Of Social Responsibility On Listing Corporation Financial Performance

In modern society, corporation should not only pursue the economic benefits and make contribution to economic development, but also have the social responsibility to promoting employment, environmental protection and other aspects. However, the profit-pursuing nature and the increasing autonomous decision-making power cause the problem of lacking social responsibility in some corporations, and hindering social development and progress. The deep reason behind this problem is the shortage on the awareness of society responsibility, the imperfection of relevant system and the weak guidance.There are some studies against the current lack of corporate social responsibility issues. Fulfilling social responsibility will pay some economic costs in terms of surface, but it will also bring some invisible income and maybe improve the comprehensive financial performance. However, because of the different theories basis, and some endogenous problems in the research method, the research conclusion at last is inconsistent, unconvincing and weak in guidance. Therefore, it’s worth to study whether fulfilling social responsibility is helpful in improving financial peformance.Based on Listing Corporation of the Shanghai Stock Exchange, this paper using the propensity score matching methodology to reduce the endogeneity, choosing companies coming from Responsibility Index as the treatment group, choosing companies not included in the Index as control group, screening and constructing enterprise characteristic variables, matching the CSR and non-CSR corporation, for the purpose of analyzing whether there are financial performance differences after the matching, and exploring a counterfactual state. The study shows that, the better social responsibility listing corporation do, the better their financial performance are, and the better effect relates to the higher enterprise’s investment expenses to some extent.