The Study On The Relationship Between State-owned Corporate Social Responsibility And Financial Performance

In recent years, corporate social responsibility has attracted widespread attention. With the lack of corporate social responsibility, there are several negative phenomenon, such as food safety incidents, frequent major accidents. Therefore, the Chinese government has begun to realize the importance of social responsibility issues. The most controversial part is the relationship of corporate social responsibility and financial performance. Enterprises worry that taking social responsibility can bring certain costs which would reduce the companies'financial performance, so companies often do not take the initiative to fulfill their social responsibilities. Therefore, undertaking the research how costs produced by corporate social responsibility affect the companies'financial performance is significant to promote enterprises to actively fulfill their responsibilities. Particularly, as the national economy leader, state-owned enterprises should play an exemplary role.This paper analyzes the impact of state-owned corporate social responsibility on financial performance and discusses whether the impact has the time lag. Firstly, this paper defines the concepts of corporate social responsibility and financial performance, proposes that the company should take social responsibility and social responsibility can improve the financial performance, which based on corporate social responsibility theory and stakeholder theory. Meanwhile, it takes the further study to analyze how corporate social responsibility affect financial performance under stakeholders' perspectives. Secondly, this paper describes the current social responsibility fulfillment situation of state-owned enterprises from four aspects, discovers the deficiencies and analyzes the reasons why state-owned enterprises lack the social responsibility. Then, this paper selects the data about the steel state-owned listed companies from 2007 to 2014 to undertake an empirical research. The results show that the impact of steel state-owned corporate social responsibility has a significant positive influence on financial performance. What is more, the time lag effect does not exist. According to the results, this paper provides several solutions and suggestions to government, state-owned enterprises and society respectively.