Empirical Study On The Effect Of Corporate Governance To Corporate Social Performance

Modern Corporate Social Responsibility since the 20th century are an important emerging concept in economics, management, law and other disciplines, from the scholar of United States in 1916 to put forward so far, the research has not stopped. At present, study of Corporate Social Responsibility in China although in its infancy, but its importance has been constantly strengthened.This paper studies on the effect of Corporate Governance to Corporate Social Performance(CSP), and separately from the internal governance mechanisms and external governance mechanisms to empirical test of these impacts. The paper consists of three main parts,which are theoretical analysis, crest the index of Corporate Social Performance and empirical research. The research starts from an overview of theoretical frameworks for CSR and the Corporate Governance theory;then crest the index of CSP.fmally the research surveys the empirical evidences on the effect of Corporate Governance to CSP, and separately from the internal governance mechanisms and external governance mechanisms to empirical test ,then carried out a comprehensive analysis.This paper Selected 1461 listed companies in the manufacturing sector in 2004-2006 to study (503 in 2004, 476 in 2005, 482 in 2006) , separately from the internal governance mechanisms and external governance mechanisms to empirical study on the effect of Corporate Governance to CSP. Results show the correlation of the proportion of independent director is negatively correlated with CSP; Only to study the internal governance mechanisms of the regression variables, the correlation of the duality is negatively correlated with CSP, and in the added variable external governance mechanisms, the correlation of duality and the CSP is not significant; . Only to study the internal governance mechanisms of the regression variables, the frequency of the shareholder meeting and the CSP is not relevant, and in the added variable external governance mechanisms, the correlation of frequency of the shareholder meeting and the CSP is not significant; the correlation of the proportion of State-owned shares is negatively correlated with CSP; the correlation of the proportion of corporate shares and the CSP is not definite; the correlation of the proportion of negotiable shares is positively correlated with CSP; Only to study the internal governance mechanisms of the regression variables, the correlation of the pay of managers and the CSP is not significant, and in the added variable external governance mechanisms, the correlation of the pay of managers is positively correlated with CSP; the correlation of the controlled market is positively correlated with CSP; the correlation of the product market is negatively correlated with CSP; the management of debt financing is negatively correlated with CSP; whether or not to issue H shares or B shares is negatively correlated with CSP. Results show that the independent director system, the shareholder meeting system, legal environment in China does not play its due role, China's product market have deformity developed.