Research On The Influence Of Corporate Social Responsibility To Corporate Value Based On The Life Cycle

In recent years, so many scandals out of the enterprise lacking social responsibilities are drawing more and more attention from all fields into the enterprise’s fulfillment of their social responsibilities. The influence of the enterprise’s fulfilling social responsibilities on its value has always been a hot topic both home and abroad, though there has not been a unified conclusion for this. With the enterprise life cycle theory being accepted, scholars begin to state that enterprises should fulfill their social responsibilities in response to their different developmental stages. But papers in this area are of no statistical significance due to the relevant standardized research. With this point in mind, this paper focuses on investigating the influence of the enterprise’s fulfilling their social responsibilities on its value based on both the life cycle theory and the stakeholder theory. In details, this paper talks about the influence of enterprises fulfilling responsibilities for the seven stakeholders, which are stockholders, employees, debtors, consumers, suppliers, government as well as the community, on the enterprise value on different stages of their life cycles.The result shows that, in the initial stage, fulfilling responsibilities for stockholders, consumers and the government has positive correlation with the enterprise value while the fulfillment of responsibilities for suppliers and the debtors, has no correlation with its value; in the growing stage, fulfilling responsibilities for stockholders, debtors, employees and the government has positive correlation with its value, while the fulfillment of responsibilities for consumers has negative correlation with its value and the fulfillment of responsibilities for suppliers has no correlation. In the period of maturity, fulfilling responsibilities for stockholders, debtors, employees and the government helps increasing its value, while fulfilling responsibilities for consumers has negative correlation and fulfilling responsibilities for suppliers has no correlation with the enterprise value. In the recession stage, fulfilling responsibilities for stockholders, debtors, consumers and the government has positive correlation with its value, fulfilling responsibilities for employees has negative correlation while fulfilling responsibilities for suppliers has no correlation with the enterprise value.Based on experiences and results, the author makes the following suggestions:first, it is important to correctly treat the influence of fulfilling responsibilities on the enterprise value, because at different stages of the enterprise life cycle, different stakeholders have different influence on the enterprise value. Second, the enterprise should selectively fulfill their responsibilities for different stakeholders based on their own situations. In the initial stage, it is better to take stockholders, debtors, consumers and the government as the positive stakeholders; in the growing period, it is suggested to pay more attention to stockholders, debtors, employees and the government; in the period of maturity, the enterprise should contribute more to the stockholders, employees and the government; in the recession stage, it is advised to meet the demands of stockholders, debtors, consumers and the government in order to get rid of the recession stage.