Research On The Performance Evaluation And Market Reaction Of Corporate Social Responsibility Based On Financial Indicators

Domestic enterprises basically accept the concept of corporate social responsibility(CSR),but the practice behind the theoretical understanding, social responsibility in the lack ofofficial information disclosure provisions, leading to social responsibility informationdisclosure and there is a strong difference in the content and randomness. This paper relieson stakeholder theory and the theory of CSR, according to the contents of CSR and socialresponsibility performance indicators selected financial evaluation principles to designindicators can be reliably measured, and a strong social responsibility for financialperformance evaluation, including shareholders, creditors, employees, consumers, suppliers,government and public relations seven aspects of corporate social responsibility financialperformance evaluation. Based on the social responsibility to financial performanceevaluation, use event study analysis research on the market reaction of CSR performanceinformation. To evaluate social responsibility performance more accurate and objective, andto explore the specific dimensions of behavior that the investors concerned about, and toestablish communication and contact bridge between the performance in CSR and financialevaluation of empirical tests.This paper studies on183A-share listed board companies which listed before2010andreleased CSR reports, and do the research on the market reaction of corporate socialresponsibility performance information. Using factor analysis reduce16indicators of socialresponsibility performance of financial dimension to creditors factor, shareholders factors,consumer and employees factors, suppliers factors, government factor and public relationssix main factors. And examines how the the main factors of CSR and overall performanceaffect CAR.Using the shares and market rate of return of the estimate window toestimate the return expected rate of return on the event window and calculated thecumulative average abnormal returns(CAR). The results show that, corporate socialresponsibility report events significantly impact on the fluctuation of CAR. Company’ssuppliers, government and public relations social responsibility performance of financialinformation and social responsibility through the annual reports of the announcement causedthe market reaction than the other three factors more evident and significant, and quantitativedisclosure group of environmental responsibility, whether in groups or in the fit of the modelregression coefficients significant are better than the paired sample group. CSR financialperformance information of quantitative disclosure group, delivered to the capital market better than the paired samples.Based on the reality of the China’s listed companies and the conclusions of this study,recommendations should be from three areas which are the government legislation andregulation, social supervision and corporate self-regulation to strengthen the enterprises tofulfill their corporate social responsibility. Specifically, government should improveperformance and social responsibility information disclosure laws and regulations, andimprove the social responsibility performance audit system and rating system, on the onehand, give full play the supervisory role of the media and the public, on the other hand, setup an independent department of corporate social responsibility, and finally focus onenvironmental responsibility and enhance the quality of CSR information disclosure.