A Study On The Impact Of Social Responsibility Of Commercial Banks On Their Risks

In recent years,with the occur of toxic milk,Foxcomn's 13 jumps,corporate social responsibility(CSR)has come into the public vision,CSR is becoming a hot topic of academic concern.Commercial banks play an important role in Chinese economy and it is the core of the modern economy.Therefore,it is of great importance to study the social responsibility of commercial banks.In this paper,we argue commercial bank's CSR can influence it's risk in two ways: On the one hand,in order to fulfill their stakeholder's demands,bank will try their best to control the risk and protect stakeholder's financial security,on the other hand,if a bank try to fulfill it's stakeholder's demands,the bank will be access to get important resources from stakeholders.The resources from stakeholders will help banks enhance their ability to manage the risk.In this paper,we have reviewed the relevant literatures which are related to the social responsibility and the risk of commercial banks at first.We have given a definition of commercial banks' CSR and commercial banks' risk after reading these literatures.Then,based on stakeholder theory and reputation theory,we have stated how commercial bank's CSR influence commercial bank's risk.Using the data of China's 13 listed commercial banks from 2010 to 2015,we select the social contribution value of per share to measure the social responsibility of commercial bank as an independent variable.By establish a factor analysis model,we get an index from analyzing 11 commercial bank's risk indexes.We use this index to measure the risk of commercial banks,and this index is the dependent variable.At last,we empirical analysis the relation of commercial banks' CSR and commercial banks' risk and draw following conclusions:Firstly,the better the performance of commercial banks in current period,the smaller the risk of commercial banks in current period.Secondly,the social responsibility of commercial banks has a lagged effect to the risks of commercial banks.The better the social responsibility of commercial banks in previous period,the smaller the risk of commercial banks in current period.The conclusion of this paper provides the basis for the fulfillment of social responsibility of commercial banks in China.On this basis,this paper puts forward some suggestions on how to promote the social responsibility of commercial banks.