The Impact Of Social Responsibility On Corporate Performance Of Listed Companies In China

As China perseveres in reform and opening up,and keeps improving the socialist market economy,the issue of social responsibility has caused wide public concern.Listed company is the best representative of the China's real economy among all industries.It's their duty to fulfill their social responsibilities.Actively fulfilling the social responsibility is a best way to build up good market image and social image for listed companies,as well as their shareholders.This paper will analyze the relationship between the social responsibility and company performance of the listed companies in China.First,this paper introduces the background,the significance,the content and the methods of this research.Briefly reviews the definition,the measurement method and the relationship between a company's social responsibility and company performance in some of the published papers.Then,this paper summarizes the status quo of social responsibility of the listed companies in China.Third,the hypothesis is proposed based on the study of stakeholder theory,contract theory,and transaction cost theory.This paper chooses the latest five year Rankins CSR Ratings as the index of the listed companies' fulfillment of social responsibility,and the corresponding A-share listed companies' data as the measurement index of performance.Then sorts companies' data into different groups by their company nature and ownership concentration.Implements descriptive analysis,correlation analysis and regression analysis on the data,and run robustness test from substitution of important variables,sample selection bias and endogeneitythree different aspects to conclude the result.After conducting theoretical and empirical analysis,the following conclusion has been drawn: there is a positive relationship between the fulfillment of social responsibility and the company performance of the listed companies in China.And company nature and ownership concentration may vary the result: state-owned companies and low ownership concentration companies outperform the others.