An Empirical Study On The Impact Of Corporate Social Responsibility On Shareholder Wealt

Since entering the new era,China has made historic achievements in its economic and social development,made continuous progress in social civilization and ecological improvement,and had a growing sense of responsibility.Xi Jinping pointed out at the "Entrepreneur’s forum" that enterprises should not only have economic and legal responsibilities,but also social and moral responsibilities.Economic responsibility is no longer the only indicator to measure the contribution of enterprises,and all sectors of society pay more and more attention to corporate social responsibility.However,for corporate managers,the motivation to fulfill their social responsibilities is not clear.Does the fulfillment of corporate social responsibilities violate the business philosophy of "shareholders’ wealth maximization" ? Can the fulfillment of corporate social responsibilities have a positive impact on corporate owners? In order to solve the above problems,this paper in-depth studies the impact of corporate social responsibility on shareholders’ wealth,which is of positive significance to understand the economic benefits of corporate social responsibility and improve the internal motivation of enterprises to undertake social responsibility.This paper takes China’s share listed companies from 2011 to 2019 as the research sample,takes the CSR rating data released by Rankins CSR Ratings as the explanatory variable,with event study method to calculate the cumulative excess yields as explanatory variables,by establishing the panel bidirectional fixed effect model to empirical analysis the influence of CSR on shareholder wealth.Heterogeneity analysis was conducted to investigate the relationship between the two under different ownership properties and disclosure forms.Meanwhile,variables such as the degree of internal control and information opacity were introduced to analyze the mechanism.In this paper,the political connections of executives are used as instrumental variables,propensity score matching(PSM)and intertemporal effect test are used to solve the possible endogeneity problems.The robustness of the empirical results is tested by replacing the background with the stock market crisis and distinguishing between internal and external shareholders.The results show that :(1)CSR can have a significant positive impact on shareholders’ wealth,that is fulfilling corporate social responsibility can improve shareholders’ wealth.(2)The positive impact of CSR on shareholders’ wealth only exists in state-owned enterprises or enterprises that are required to disclose reports.(3)CSR can influence the level of shareholders’ wealth by influencing the degree of internal control and information opacity.The above research results show that CSR does not violate the business philosophy of "shareholders’ wealth maximization",and actively undertake CSR is conducive to increasing shareholders’ wealth.Therefore,this paper puts forward the following suggestions: First,enterprises should realize that CSR is an important role in shareholders’ wealth,and should take the initiative to improve the strength and level of CSR;Secondly,investors should tilt resources towards positive energy enterprises on the basis of rational judgment,and take practical actions to support enterprises that contribute to social development.Finally,the government should further improve the CSR report disclosure system,expand the attention and recognition of CSR in the society.