Research On The Relationship Between Social Responsibility And Financial Performance Of Coal Enterprises

Since the 20th century,China’s coal industry has experienced rapid development for more than ten years.At the same time of development,a series of social problems have emerged,such as coal mine safety accidents,ecological environment damage,and unqualified product quality,reflecting the lack of social responsibility of coal enterprises.Stakeholder theory believes that corporate social responsibility enables all stakeholders to form a community of interests,generate positive interactions,and contribute to financial performance.However,the trade-off point believes that the implementation of social responsibility by enterprises will lead to increased costs,which is contrary to the pursuit of economic benefits.In the current research,most scholars are limited to the demonstration of corporate social responsibility in the single direction of financial performance,while ignoring the mutual influence of the two variables,and the relationship between the two variables will be affected by other factors Based on this,this paper studies the interaction between social responsibility and financial performance of coal enterprises,and considers the influence of political connections on the relationship between the two variables.Firstly,the research background and significance of this paper are expounded,and the research perspective and research content of this paper are put forward on the basis of summarizing the research status at home and abroad.Secondly,it defines the concepts of corporate social responsibility,financial performance and political connection,analyzes the relationship between corporate social responsibility and financial performance and the influence of political connection on the relationship between the two variables based on relevant theories,and proposes the research hypothesis.Then,using the data of the listed coal enterprises from 2010 to 2017 for eight consecutive years,using descriptive statistical analysis,correlation analysis and ordinary least square regression analysis,the research hypothesis is tested.The results show that:(1)The interaction between social responsibility and financial performance of coal enterprises is positive;(2)The interaction between social responsibility and financial performance of coal enterprises has a lag;(3)The positive interaction between social responsibility and financial performance of politically affiliated companies is stronger than that of non-political affiliates.Finally,recommendations are made at the corporate,government,and social levels.Through the research in this paper,it is beneficial for coal enterprises to correctly understand the relationship between the two variables,guide coal enterprises to look at corporate social responsibility with strategic development,and promote the fulfillment of coal enterprise social responsibility,thus contributing to the sustainable development of coal industry.