An Study On Relationship Between Corporate Social Responsibility And Institutional Investors’ Stockholding

Since1980s, with increasing seriousness of all sorts of social and environmental problems, corporate social responsibility(CSR) has been rapidly becoming the focus both in theory and in practice. Practices of CSR linked to firm performance and stakeholders enter into a new study stage. The relations between CSR and institutional investors’stock holding (IIS) have been studied abroad for a long time, in contrast, has our CSR commitment in capital markets affected the institutional investors’ decision-making? Meanwhile, has institutional investors’ stockholding influenced the performance of CSR? Under the guidance of such thinking, this paper explores the rationality and effectiveness of studying the relationship between CSR and IIS by means of literature review and theoretical analysis. With empirical studies on this relationship, this article is meaningful for the exploration of institutional investors, responsible investment and CSR.Firstly, theories and methods are summarized; in addition, the current situations are analyzed regarding the correlations between the CSR and institutional investors’ participation in corporate governance so as to lay a foundation for the following research.Secondly, the interaction between CSR and IIS are analyzed and modeled, what is more, the specific influencing factors and modes of which are further discussed.Thirdly, empirical research is made on the relationship between CSR and IIS. On the one hand, the financial analysis index system of CSR is constructed from five aspects, i.e. government, employees, shareholders, creditors and contribution to public utility of CSR, which is in consideration of imperfect information disclosure of CSR in the company’s annuals. Besides, the dimensionality of the evaluation index system would be reduced through factor analysis method. On the other hand, the research assumptions are established based on above research foundation and mechanism analysis. Descriptive statistical analysis and regression analysis are conducted on the variables after choosing153China’s listed enterprises of QFII shareholding as study sample. This empirical study showed that institutional investors were willing to hold corporation shares with good social responsibility. Corporate’ social responsibility for government, shareholders, creditors and employees has a significant impact on IIS while that for the charity and IIS is unknown yet. As an intermediate variable, corporation performance’s intermediate effect is also prominent.Finally, the empirical results are analyzed to reach some inspirations; based on which innovations and weaknesses about this paper are explained; future research directions are prospected.