Research On The Insurance Effect From The Corporate Social Responsibility Performance To Wealth Of Shareholders

In recent years, much attention has been paid to corporate socialresponsibility in corporate governance. With the frequent exposure ofnegative events in domestic and foreign enterprises, the concept ofcorporate social responsibility research began to shift from basic contentframework to the consequences of corporate social responsibility.Scholars focused on the relationship between CSR and corporate financialperformance, CSR and corporate image, results, CSR behaviors andconsequences etc., which received a large number of realisticconclusions.This paper applied economics, management and other relatedknowledge and theory, based on stakeholder theory, reputation theory andsocial psychology related theory, used the negative events of enterprise asbackground, to study the insurance effect from the social responsibilityperformance to wealth of shareholders, along with China’s capital marketdata validation, to supplement and perfect the mechanism of "negativeevents affection of CSR buffering performance", finally to guide theenterprise to build the CSR strategy to reputation management and crisismanagement.Started with devastating disaster of negative incidents from Chineseenterprise, this paper analyzed its reason, the perspective of corporatesocial responsibility, corporate social responsibility, corporate reputation, the relationship between the shareholder values, and concluded thatthrough the intermediate variable of corporate reputation, corporate socialresponsibility performance can ensure shareholder wealth by smallerlosses when negative events occurred, so as to exert its effect insurance.Secondly it choose China’s listed companies of negative reports in2012as research objects, used event study and the methods of regressionanalysis to make theory empirical test, the results showed that corporatesocial responsibility performance can actually slow the loss process ofshareholder wealth when negative event occurred, and industry type,enterprise scale were also able to influence the insurance effect fromcorporate social responsibility performance to shareholder wealth.Finally, it gave suggestions to strengthen internal management andimprove corporate reputation from aspects like how to better fulfill thesocial responsibility and regulate information disclosure of socialresponsibility, build corporate social responsibility strategy. In the end,according to the status quo of China’s corporate social responsibilityfulfillment and disclosure, combined with the experience of westerndeveloped market, it analyzed the construction of corporate socialresponsibility strategy in China.