Corporate Social Responsibility, Contributions To Corporate Value And Firm Characteristics

As what we have known, empirical research in Corporate Social Responsibility (CSR) ismainly about two issues, which are empirical test of influential factors of CSR and empirical testof the ways that CSR affecting corporate value. Based on stakeholder theory and sustainabledevelopment theory and using the expanded Solow Model, we did empirical study on thecorrelation between the rate of CSR intensity of involvement growth and the rate of firm valuegrowth. After that we measured the breadth of the value creation of CSR, and did empirical testbetween contributions of CSR to corporate value and the firm characteristic factors.The studies show that increasing involvement to CSR does have the positive impact oncorporate value, and the CSR’s contributions to corporate value are differentiated due to differentfirms. Corporate’s profitability is significantly positively related to the CSR’s contributions tocorporate value, therefor a firm should take on proper responsibilities according to its ability;both of the debt paying ability and the operating capacity are significantly negatively related tothe CSR’s contributions to corporate value, which corroborated the diminishing marginal utilityfrom CSR. In addition, controlled variables like the firm scale and the ownership structure arerelated to the CSR’s contributions to corporate value, while the level of competition, and thelocation of the firm are not significantly related to the CSR’s contributions to corporate value.