Social Responsibility,Media Coverage,and Shareholder Value

With economic development in China,corporate business philosophy is progressing as age advances.A large number of outstanding companies are working to improve management in order to make a breakthrough in performance while choose to fulfill some social accountability.This will be of great benefit to company's growth in a long run,which is acknowledged by company management teams,as the company is so relevant to society.However,some companies inevitably don't concern about this issue.They operate in a way that is seriously in contrast to social perspective for all around well-balanced development.During the manufacturing,for example,product quality is reduced in order to cut costs,but this will bring potential risks to consumers.Another example,low human resource costs,and insecure and insanitary working environment will physically and economically do harm to employees.The times progressing allows diversified media operation especially with the internet boost.It is so convenient for the public to obtain information about social events through the media.Also,the public can easily form their own reviews and opinions in response to these events.In the context of media advancement,company policies to interested parties(consumers,shareholders and communities)and their responses to these policies can be quickly spread through the media.This will have an impact on the company's stock market.This paper therefore intends to study how these two factors work to influence corporate value.In this paper,455 listed companies(2011-2017)are involved as research objects.With theoretical and empirical analysis,the relationship between Social Responsibility,media coverage and corporate value is explored.The research conducts this analysis:First,analyze the theory of interested parties and information circulation,and then the significance of meeting interested parties and social accountability to enhance corporate value.Also the important role of the media in information transfer is studied,presenting how the media works to keep balance in social accountability and corporate value.The analysis employs the fixed effect model of panel data in the measurement method,and the instrumental variable method is used to solve the endogenous problem.The results show that the company's active fulfillment of socialaccountability helps increase shareholder value.The more media attention available,the higher Romany value is.Also,the increase of media attention plays a positive role in how Social Responsibility inclusive shareholder value.Under this circumstance,the increase in the number of media coverage magnify the impact of Social Responsibility on shareholder value.In accordance with the study,that the company meet different types of interested parties is as important as the enhancement of corporate value.Newspapers and media have a larger impact on corporate value while social accountability has more effect on private enterprises.Taking social responsibility can enhance company reputation,but at the expense of reducing the efficiency of business operations.Based on the above,this paper puts forward suggestions for enterprises,media,regulatory authorities as well as the public: First,enterprises should more focus on fulfill their own responsibilities,especially for state-owned enterprises,to fully understand the reason why they take social accountability,which can reduce unnecessary economic loss.Meanwhile,enterprises need to make full use of the media to promote themselves.Second,the media should maintain good professionalism to report objectively and fairly on social events.The media should not follow suit and release false news together with enterprises.Third,on one hand,regulatory authorities must guide the company to actively fulfill its social accountability and make sure that the company makes profit along with the local economic development.On the other hand,regulatory authorities must maintain supervision over independent media.Fourth,make sure the public,especially for investors,not to be misled by the false information,but stay calm and properly deal with the information.