Empirical Studies On Market Reaction To Social Responsibility Accounting Information Of The Listed Companies In China

Since the reform and opening up for the last30years, our economy has acquiredconsiderable achievement. While reports of fresh successes keep pouring in fromeconomic construction, however, activities which make our blood boil have regularitybeen come out in social responsibility field. From Shanxi Datong land subsidenceevent caused by coal mining to Guangdong Beijiang cadmium pollution events, andthen to Foxconn employees’ frequent jump off building event and to HenanShuanghui clenbuterol event, the occurrence of which has continuously torturedenterprises’ social responsibility with interrogation and has caused society from allwalks of life about accountability and thinking of enterprises’ social responsibilityof.It’s no doubt that as the main body of the market,enterprises plays an importantrole. However,while enterprises create great wealth for the society,they also bringmany negative impacts. Not only do this run counter to the sustainable developmentstrategy, but it also limits the development of our national economy to a certaindegree. On the other hand, economic globalization provide our enterprises withimportant opportunities to participate in the international market competition.Andforeign economic developed areas pay increasingly attention to social responsibility,thus strengthening construction of our countries’ social responsibility is also theinevitable requirement of participating in the international market competition.Therefore, it is of comparable practical significance to do research on the situation oflisted companies social responsibility accounting disclosure in China and put forwardsome related suggestions for improvement.However, based on the current situation of China’s capital market, how are theneeds for social responsibility accounting information of different stakeholders insociety? How is the current situation of listed companies’ disclosure of socialresponsibility accounting information? How will the reaction to the disclosure ofsocial responsibility accounting information in the stock market. With these questions,based on the stakeholder theory, enterprises’ related interest groups are divided intoemployees, consumers, government, investors and publics in this paper, and thenanalyze the responsibility of the enterprise to the interest groups respectively, andstudy market reaction to the accounting information of interest groups as well as theirinfluence on the enterprise.In the past research about market reaction to social responsibility accountinginformation, a lot of people chose the average of share price as the measurement of market reaction to social responsibility accounting information, but the average of theshare price has great limitations in the application. Therefore, based on the previousresearch, this paper selects cumulative abnormal return (CAR) as the measurement ofmarket reaction. In the empirical study this paper selects928listed companies of2010year in Shanghai and Shenzhen A-share market as research samples. Choosing thefive days before or after the announcement of financial report as time window, thispaper do research on the correlation between social responsibility of stakeholders inlisted company and the company’s cumulative abnormal return of the stock, tomeasure the reaction of the market to the disclosure of social responsibilityaccounting information. The empirical results show that:China’s capital market at thepresentstage of social responsibility of accounting information of listed companies isnotsensitive to the reaction.The empirical results show that:at the present,the reactionofour capitalism market to social responsibility accounting information is notsensitive. Finally, aiming at the phenomenon that the sensitivity of socialresponsibility accounting information in the market is not high, this paper makessome explanations and puts forward several suggestions on enhancing the disclosureof social responsibility accounting information in our country.