Earnings Smoothing, Corporate Social Responsibility And Corporate Valuation Correlation

With the globalization of the world economy, consumer awareness of social issues and environmental issues gradually increase. Under the guidance of the concept of sustainable development, corporate social responsibility and commitment gradually attracted extensive attention. In recent years, the smoothing of earnings and corporate value relationship of many previous studies have shown that high-quality financial information reflecting a surplus smoothing worth more relevant, however, as the factors that reflect the company’s corporate social responsibility information disclosure level rarely scholars will be introduced into the study. In this context, drawing scholars present systems of corporate social responsibility theory and research results, based on the course of development of corporate social responsibility, CSR System Regulation surplus smooth and firm value pairs, as enterprise value relevance analysis dimensions provide a unique quality in order to provide information on corporate social responsibility more and more precise information for the user, assisted investment decisions.As a surplus smoothing the forefront of thinking executives, managers are more willing to take small fluctuations in earnings management, reducing the downside risks brought by the smoothing earnings. Previous studies have shown no causal link exists between the smoothness and the value of the company. Meanwhile, the social responsibility to fulfill in good company earnings management and corporate financial reporting and other performance significantly different. Therefore, this paper speculated that social responsibility to fulfill smooth earnings information reported good business situation less deviate from its long-term level of income, so its earnings report more valuable information relevant. In this paper, empirical research on Chinese Listed Companies Corporate Social Responsibility 2010-2013 annual data, designed to test different corporate earnings smoothness after fulfilling corporate social responsibility activities, and the impact on corporate value. Through the establishment of structural model and using least squares regression analysis to test different corporate profits and corporate social responsibility activities common to the enterprise value of the relationship between the existence of a significant relationship.The results showed that the value of the company by the combined effect of the correlation between the level of corporate earnings smoothing and the level of corporate social responsibility. It is noteworthy that, in steady revenue and corporate social responsibility have higher rates of enterprises have a higher income returns, higher Tobin’s Q, in the future there is a higher return on assets. That is a moral enterprise management to provide information about corporate earnings smoothing has a higher value relevance, the results of previous studies on the expansion of the surplus smooth and firm value. In short, the corporate social responsibility as a surplus smoothing property unique quality dimensions proved to be feasible, and to measure the value of the enterprise is also available, to give investors and analysts provide a smooth under different levels of surplus value related to the degree of tool.