Relationship Analysis Of Real Estate Corporate Responsibility And Financial Performance

In recent years, the international and domestic community are very concerned about the issue of corporate social responsibility. In our country food safety issues occurs repeatedly and the lives of miners are not protected when they work and so on, these phenomena cause people’s attention to the corporate social responsibility again and again. Many foreign enterprises regarded fulfilling their social responsibilities as a means to gain competitive advantage, corporate social responsibility is a relatively complete system in western countries, and our research about corporate social responsibility is still in its fledgling stage and constantly evolving.The real estate business is a special industry, it not only related to people’s lives and it also has made great contributions to our national economic, it has an important significance whether the real estate companies should fulfill social responsibility. Some real estate managers believe that investors put money into the company, because they want the manager to help they earn money, the manager of an enterprise should not consider the relief of the poor, but some companies do fulfill their social responsibility and profitability of the enterprise has improved. Whether enterprises should fulfill the social responsibility is no consensus, whether financial performance is affected by fulfilling corporate social responsibility, which is a key factor when a business considers undertaking consciously social responsibilities. In this paper, listed real estate companies are selected for the subject of study, the aim of this paper is to study the effect of real estate enterprises’financial performance after fulfilling social responsibility.This paper first introduces the research background, meaning, content methods and possible innovations, then summarizes the research literature on corporate social responsibility at home and abroad, at the same time describes the theoretical basis of this article. On the basis of previous studies and theory, the paper describes the content and features of the real estate business, the object of the real estate companies to fulfill and content of social responsibility and social responsibility status quo, then analyze the impact of corporate social responsibility on financial performance from the cost-effectiveness, management, Game Theory. According to previous theoretical research and analysis, the author quantify the corporate social responsibility and financial performance, select listed real estate companies financial statement date from2008to2010for the samples, use the SAS statistical software system for cross-section time-series mixed regression and regression year after year. Cross-sectional time series regression results show that the majority of corporate social responsibility indicators and financial performance (ratio of total assets) has a positive correlation, among them, rate of Capital Maintenance and Appreciation of the shareholders indicators and rate of total assets has a significant positive correlation relationship. Derived from data for three years, year by year regression results show that many index at least once have a positive correlation with rate of total asserts, for example, capital preservation and appreciation, operating cash flow debt ratio, the level of employee turnover, accounts payable turnover ratio, ratio of various taxes and fees. Finally, the paper describes the conclusions drawn from the analysis in this article, shortcomings and future research prospects.