The Influence Of Corporate Social Responsibility On The Bias Of Company Valuation

Corporate valuation is one of the means for investors to judge the value of enterprises,and it has always been the research object of academic circles.This is the intrinsic value of an enterprise based on its own operation and future sustainable development ability,and can be used as one of the criteria for stakeholders to measure the necessity of investment and financing to some extent.In China’s securities market,there is a situation that the market value of listed companies deviates from their intrinsic value.This also points out the direction that the current company valuation needs to be further studied,on the one hand,whether the market value estimation of listed companies is reasonable,on the other hand,what are the factors that affect the market value.Therefore,studying how to alleviate the problem of company valuation bias can promote the healthy operation of the market.In recent years,due to the complicated international situation and accelerated climate change,it has posed a severe challenge to the country and the world.Facing the test of the changes of the world,times and history,what role China enterprises play and what role they undertake has become the focus of attention from all walks of life.Since the beginning of this century,social responsibility has caught the public’s eye,and more and more stakeholders regard the performance of corporate social responsibility as one of the criteria for evaluating the development of enterprises and market value investment.Corporate social responsibility can also send good messages to all walks of life and show the bright future of their own development.Therefore,it is of practical significance to study corporate social responsibility in China.And how does corporate social responsibility affect the misunderstanding of company valuation? Based on corporate social responsibility theory,information asymmetry theory and company valuation theory,this thesis selects listed companies in Shanghai and Shenzhen A-shares from 2010 to 2020 as the research object to explore the influence of corporate social responsibility on company valuation bias.This thesis also discusses the intermediary role of information disclosure quality and information asymmetry,the external adjustment role of media attention and environmental uncertainty,and the heterogeneity analysis based on related characteristics.The results show that there is a significant negative correlation between corporate social responsibility and company valuation bias,that is to say,actively taking social responsibility can alleviate the deviation between market value and intrinsic value of the company;Enterprises actively fulfill their social responsibilities,which can improve the quality of information disclosure and reduce the degree of information asymmetry,thus alleviating the company’s valuation bias;The higher the media pays attention to the enterprise,the stronger the role of corporate social responsibility in alleviating the valuation bias of the company.However,in the context of severe environmental uncertainty,the mitigation effect of corporate social responsibility on corporate valuation bias will be weakened;Corporate social responsibility corrects the company’s valuation bias,mainly to reduce the stock price of enterprises whose market value is seriously overestimated,so as to reduce the bubble in the market.This correction is mainly brought about by shareholder responsibility and social responsibility,and mainly exists in non-state-owned enterprises.