Empirical Study On Corporate Social Responsibility Finance

Corporate Social Responsibility (CSR) is formed in the historical evolution of human social practice, when economic and social development come to a certain stage. With the remarkable development of economic and continuous expansion of enterprise scale, corporations play a increasingly important role in modern economic and social life, and at the same time, be expected to assume more social responsibility. In recent years, CSR theory and practice has been great developed, more and more scholars and managers agree that Corporate Finance as a academic and practice subject, should be connected with a wider range of stakeholders, including state, shareholders, creditors, consumers, suppliers, employees, government and community stakeholder groups etc, instead of only to be a safeguard of shareholders’ interests. People also agree that fulfilling corporate social responsibility should be a key part of the operation and management of the companies, through which the corporate governance will be optimized, the corporate earnings will be harmonious with social benefits. And in-depth analysis of the relationship between the corporate social responsibility and the corporate value is the theoretical basis to guide the corporations to the initiative, positive commitment and fulfillment of their social responsibilities.Social Responsibility Finance (SRF) is a new "concept" put forward in the paper, which gives the company financial management new connotation of Social Responsibility, and generate a new impact on the financial practice and financial performance. Because of Social Responsibility Investment (SRI) has become a internationally recognized concept, and the scope of this paper covers various aspects of financial management including investment, financing and distribution management, so this paper adopts "Social Responsibility Finance" as the research scope, to conduct a comprehensive study on the relationship between corporate social responsibility and corporate value.There are many studies of CSR at home and abroad, but the awareness of CSR finance and firm value is not consistent. On the foundation of summarizing the domestic and international CSR finance theory and practical, by collecting a large number of operating data and social responsibility information of China’s listed companies, and by applying quantitative empirical analysis, the paper aims for seeking the relationship between China’s listed companies’fulfillment of social responsibility behavior and the value of the companies. The paper select two perspective to study the value of the company:one is the Finance Efficiency as "internal perspective", and another is the price of the companies on stock market as "outside perspective". Accordingly, the empirical analysis of CSR and corporate value will be done on the relations between the CSR and the efficiency of Corporate Finance, and on the relations between the CSR financial behavior and the reaction of the capital market.Through two topics (include five relatively independent sub-topics), the paper studies the relation between CSR and corporate financial efficiency, the relation between CSR, government intervention and corporate, and the relation between CSR mergers/acquisitions/distribution and market response. The results show that the performance of the CSR of the list companies is significantly positively related to the corporate financial efficiency and market response. In another words, CSR is significantly positively related to the value of the companies. Furthermore, causality analysis is made to elaborate the correlation of CSR and corporate value, and CSR practices of an insurance company are used as example to illustrate the consistency of CSR and corporate value.From a comprehensive perspective, The paper tries to deepen and expand the study of the relationship between the CSR and the value of the companies, not only provides the evidence of the important significance of CSR finance for the domestic listed companies, but also, as result of argumentation, obtains a series of valuable conclusions and put forward a series of recommendations to improve the level of domestic CSR. This study provides a theoretical basis for the government to specific and strengthen the CSR and to improve the evaluation mechanism of CSR fulfillment, for the enterprises to balance the interests of itself and of the stakeholders, and for promoting the construction of harmonious relations between the government, enterprises and society. This is just the meaning of this paper.