Corporate Social Responsibility And Shareholder Value

In recent years, with the rapid development of economic, more and more social problems were caused by the enterprise one after another. More and more people pay attention to the corporate social responsibility. In this case, many research about corporate social responsibility were put forward. Traditional financial theory pursuits of the maximization of corporate interest and ignores and even does harm to the interests of other stakeholders, which inevitably lead to lack of corporate social responsibility. It also reflects that many corporate have little sense of social responsibility and they are unwilling to meet the need of corporate social responsibility. It is considered fulfilling this responsibility will increase the cost of business and reduce the interests of shareholders.The samples selected by this paper are through Chinese listed companies during 2010-2014. Based on stakeholder theory, system theory, and the theory of reputation risk, the effect of domestic enterprise enterprise social responsibility performance, reporting and verification on the ascension of shareholder value are studied by examining corporate social responsibility report and verification impact on shareholder value. Through the research, this paper concluded that:(1) The enterprise good social responsibility can enhance shareholder value; (2) The disclosure of corporate social responsibility report can effectively transfer information of social responsibility performance, enhance the positive relationship between social responsibility and shareholder value. (3) The corporate social responsibility report verification can promote social responsibility performance of the market value of firms, but can not significantly reduce the risk of the enterprise system.When designing the empirical part of the regression model in this paper, two indicator, Tobin’Q and beta are adopted to evaluate the shareholder value standard respectively. In this case, the shareholder value can be more comprehensive. Through the regression coefficient and significance test of these variables, the influence of explaining variables on Tobin’Q and beta are analyzed. Finally, this paper use the Spirit of social responsibility scores instead of the dispatch social responsibility scores to represent the corporate social responsibility performance. Further more, the effects of corporate social responsibility performance of shareholder value is investigated. In addition, according to spirit website published 25 points and grouping of standards of social responsibility performance, to return to verify the social responsibility of the good performance to improve effects of shareholder value, the social responsibility of the poor performance can not improve the shareholder value.