Relations Study Between Corporate Social Responsibility And Financial Performance Of Listed Companies

The social responsibility of U.S. financial firms triggered by default to the global crisis, most people in the world sounded the alarm loud and clear, in the 21st century, corporate social responsibility has become an international trend, with accession to WTO, China and the world economy, more and more deeply integrated together,"corporate social responsibility"has been no stranger in our country, and even a hot topic.For businesses, whether there is a relationship between profit creation and social responsibility fulfillment , whether it is positive or negative , and the size of the degree associated, no doubt are the concerns of the enterprise.In theory, on the one hand, fulfilling corporate social responsibility, you can get a lower financing costs in capital markets, a long-term cooperative relations with investors, obtain the highly effective human resources in the labor market, fully mobilize the enthusiasm of the staff, build brand and reputation in the product markets, thus win consumer's currency ballot, obtain the recognition of Government and community in the public services market, to save the cost of administrative examination and approval and get preferential policies and support; on the other hand, corporate social responsibility commitment will no doubt be additional costs, cause a certain degree of pressure on the cash flow, so the financial aspects of business whether they have a certain strength, is material guarantee of better fulfilling social responsibility for a company. Thus, in theory, corporate social responsibility and financial performance is positive correlation between the two-way, both reinforce each other, can achieve a virtuous circle.Empirically, stakeholder theory is introduced to evaluate the corporate social responsibility, on the basis of considering availability and objectivity of the data, this paper selects a representative sample of listed companies in the Shanghai Stock Exchange and Shenzhen Stock Exchange ,and collects corporate social responsibility information of nearly three years disclosed in its annual report, to carry on the year and multi-year analysis of the correlation, and on this basis, introduce regression analysis.The empirical results show that the correlation between corporate social responsibility and the current period financial performance is higher than the relevance of corporate social responsibility and the later period financial performance, while the relevance of corporate social responsibility and the later period financial performance is higher than the relevance of corporate social responsibility and prior period financial performance;the regression results of corporate social responsibility on the financial performance are better than the regression of financial performance on corporate social responsibility, but the significance is not very ideal on the whole. More significant regression coefficients of variables are positive, which shows that whether corporate social responsibility impacts on financial performance, or financial performance impacts on corporate social responsibility, both are positive direction.Finally, this paper makes relevant policy recommendations for building of corporate social responsibility, such as the establishment of corporate social responsibility accounting reporting system, establishing a sound social credit system, introducing practical mechanism of corporate social responsibility for listed companies.