The Relationship Between Corporate Social Responsibility And Financial Performance Of The Listed Agricultural Companies

Corporate social responsibility thought have been paid great attention by the westerncountries, as the further reform of the China’s economic structure,the performance of the listedcompany social responsibility has become the focus of the whole society.Enterprise societyresponsibility consciousness help to improve customer loyalty,and help to attract talent,improvethe regulatory environment and reduce trade barriers.However,some of China’s enterprises is stillsuspicion and hold the wait-and-see attitude to perform social responsibility,in theiropinion,perform the social responsibility will only increase costs and make negative impact to thecompany’s financial performance,on this issue,this paper in relation to the social livelihood of thepeople of the agricultural listed companies as samples,using empirical method,analyzed therelationship between the two.Firstly,this article reviewed the predecessors’ research results,generalized the theoretical basisof the related problem,defined the concept of agricultural industry,corporate social responsibilityand stakeholder,and introduced six hypotheses about the relationship of them.Secondly,from theperspective of industry,using agricultural listed companies as the research object,introduced thedevelopment present situation,the characteristics and the social responsibility fulfillment situationof agricultural listed companies,and elaborated the agricultural listed company’s financialsituation.And analyzed the relationship between two of them in theory.Then this article selected95sample datas of the agricultural listed companies from2009to2011at the end of the year,in totalof285sample datas,and analyzes the relationship empirically.Considering the managementeffectiveness and efficiency of the enterprise,respectively select the net interest rate of the totalassets and total assets turnover ratio two accounting indexes to measure the agricultural listedcompany’s financial performance. Reference to predecessors of the"stakeholder andweight"method,sort out the index which can reflect the stakeholders of corporate socialresponsibility from the agricultural listed company’s financial statements,and item by item,give theweight,then item by item for evaluation,finally concluded the overall evaluation of corporate socialresponsibility from the perspective of stakeholder theory.Empirical aspect,this article put forwardtwo assumptions,namely:the better corporate social responsibility,the better its financialperformance;the better company financial performance,the better corporate social responsibility performance.While on company size, company growth and company capital structure index as thecontrol variable,establish regression model,analyzed the relationship between social responsibilityof agricultural listed companies and their financial performance.The results of the study showthat:the social responsibility and corporate financial performance of agricultural listed company isa kind of dialectical relations of interaction,company’s current good social responsibility will leadto a good financial performance,and previous good financial performance will bring the positiveinfluence to corporate social responsibility.Finally according to the results of empiricalanalysis,This paper respectively from promoting social responsibility to improve financialperformance and improving the performance evaluation to guarantee the social responsibility twoaspects,put forward the corresponding policy recommendations.