Social Insurance And Firm Value

The arrangement of employee welfare is an important issue in corporate internal governance structure.Employee welfare,as a supplement to wage provided by the enterprise,has a positive significance for improving the living standard of employee and promoting the development of the enterprise.Social insurance is an important part of employee welfare,and has the special function of economic compensation,financing and social management.The study on how the social insurance influence on the firm value from the perspective of employee welfare arrangements is meaningful for the issue of internal governance structure as well as protecting workers and promoting social equity.This paper combines the method of qualitative analysis and quantitative analysis to study the impact of social insurance on firm value.From the prospective of welfare function and corporate governance,this paper analyzes how social insurance influence workers as sense of belonging and sense of responsibility.The paper summarizes the theory of human capital,corporate governance structure and corporate social responsibility to explore the relationship between social insurance and firm value.In empirical research,this paper selects datas from Chinese A-share listed companies between 2007 and 2015.Through descriptive statistics,correlation analysis,regression analysis,endogenous test and robustness test,this paper explores the relationship between social insurance and firm value in China.In addition,taking the political and economic background of our country into account,this paper also introduces the element of the nature of the enterprise for further study.The main conclusions of this study are the following three points:first,to increase the social insurance has a positive effect on firm value;second,compared with the non private enterprises,increasing social insurance has stronger influence enterprise value in private enterprises;third,the influence of increasing social insurance on enhancing firm value is more obvious during economic recession phase than during enconomic rising stage.According to the results,this paper proposes the listed companys to strengthen the attention of employee welfare and improve social insurance arrangements,especially establish enterprise annuity to play active role of supplementing social insurance.Enterprises can make reasonable layout in strategic arrangement and improve the internal governance structure.At the same time,the government can strengthen market supervision and improve the overall market quality and the overall level of firm value.