The Impact Of Social Responsibility On Financial Performance Of Listed Companies

With the deepening of China's reform,while the country's economic strength continues to be strong,it also hides a series of environmental and social issues.The listed companies' disclosure of social responsibility is not comprehensive or even disclosed,and some listed companies,in pursuit of short-term interests,take some illegal measures to the detriment of the interests of consumers and at the same time,It also loses the trust of shareholders,increases borrowing costs,and reduces employee loyalty,they also have an extremely negative impact on the society.A company's disclosure of social responsibility and the level of the disclosure are voluntary,so many companies do not disclose or they disclose incompletely.This makes the issue of social responsibility attract plenty of attention in all sectors of society.Listed companies should pay attention to public psychology and follow market trends.However,while listed companies take the initiative to shoulder their social responsibilities,they will inevitably increase their costs.Therefore,how listed companies should undertake and bear how much social responsibility requires clarifying how social responsibility affects financial performance.By analyzing and sorting out the relevant literature at home and abroad,choosing the most representative to elaborate,in the process of sorting out the listed companies and financial performance related theories,we find that the corporate citizenship theory,the hierarchical social theory,the social contract theory and the stakeholder theory.All of them provide theoretical support for the research,in which,from the perspective of stakeholders,we put forward research hypotheses on the social responsibility of shareholders,creditors,employees,government and community respectively.From all listed companies in Shanghai and Shenzhen A-share market,we select 10 years of data of 862 listed companies of A shares in Shanghai and Shenzhen from 2007 to 2016 as research samples.At the same time,we take the social contribution rate,asset profit rate,asset interest rate,asset tax rate and asset donation rate as indicators to measure the social responsibility of listed companies.We use relevant data to do descriptive statistics,correlation analysis and regression analysis and other empirical analysis methods to verify the influence of the performance of listed companies to fulfill their social responsibilities on their financial performance.Empirical test results show that the listed companies in our country fulfill their social responsibility in general to promote their financial performance,among them,employees,government,and community have a significant role.Policy recommendations such as through the use of external forces and the establishment of a new external environment,we put forward the corresponding policy recommendations to guide the listed companies to treat social responsibility in a long-term view.