The Impact Research Of Chinese Listed Banking Companies' Social Responsibility On Financial Performence

Bank social responsibility is guiding other companies to conduct their socialresponsibilities beyond the sustainable development of their own, particularly thosecompanies through bank financing. So far, social responsibility of banking industrystill lacks a reasonable and authoritative evaluation index system. Therefore, wedesigned a social responsibility evaluation index system for banking industry, whichis to analyze the impact of social responsibility on financial performance, in order tofind motivation and basis for banks to consciously undertake social responsibilities.Firstly, this paper analyzed the relationship between social responsibility andcorporate revenues based on externality theory and game theory. It points out that ifthe government lacks a reasonable system to regulate corporate behaviors, theprofit-maximizing firm will choose the Nash equilibrium consumption of publicresources instead of initiatively fulfill their social responsibility to seek the wholeregion's optimal Pareto equilibrium. The result is high outputs, low returns.The next is the empirical analyses. This paper designed an index system toevaluate the levels of banking industry's social responsibility, which is to extract5-year panel data from the listed companies of banking industry's annual report andsocial responsibility annual report as factors and use the SPSS16.0 to calculate theBank's Social Responsibility score. The results showed that the overall developmentof social responsibility of listed companies in banking industry is in good condition inlast five years. It builds the foundation for the following regression analysis. We alsoconstruct a financial performance indicator system, and conduct the factor analysis.We see social responsibility factors as independent variable, see the financialperformance factor as the dependent variable. The relationship between financialperformance factors and social responsibility factors is achieved through multiple linear regression analysis at the end, to solve the impact of their social responsibilityon current and financial performance. Research found: social responsibility has apositive impact on absolute return factors, business risk factors and net capital gainsrate factors. However it has negative impact on factors of non-performing loans ratio,net interest margin factors and the impact decreases gradually on the latter, twoabsolute return factors. Research shows that corporate social responsibility indicatorsand financial performance indicators showed significant positive correlation, and itlags to financial performance. However the impact is decreasing with time.