Research On The Effect Of Foreign Equity Participation On Company Value Based On The Mediating Effect Of Corporate Social Responsibility

With the sustained development of financial market reform like internationalization of the Renminbi, interest rate liberalization and so on, the status of China’s market economy will be recognized by the Western capitalist countries. This will play a beneficial role in China’s capital "go out" and be conducive to attracted foreign capital to enter the China’s capital markets. How to examine the influence which arises from the investment of foreign enterprises in domestic enterprises in China will be a problem which can not be ignored. First of all, this thesis analyzed the mechanism using a combination of theoretical analysis and questionnaire survey. Corporate social responsibility is a path to foreign equity participation and company value. Foreign equity participation has a positive impact on the performance of corporate social responsibility. And the performance of corporate social responsibility further increases the value of the company. Then, this thesis established a mediating variable model to test the mechanism analysis using the data. This point of view that foreign equity participation has an influence on the fulfillment of corporate social responsibility which finally has a great impact on the company value is verified further by data. The data show that corporate social responsibility indeed plays a mediate role in the relevance between foreign equity participation and company value. Then, this thesis took the S company as a case company to further study the research in the thesis. The case analysis also introduced the A company as a comparison company on the bases of S company, thus leading to a more in-depth comparative analysis. Finally, this thesis put forward some relevant suggestions from macro and micro levels based on the conclusion that corporate social responsibility does have the mediating effect. The innovative points of this thesis:In the part of the mechanism analysis of foreign equity participation and corporate social responsibility, this thesis introduced Association Learning Theory and Rosenthal Effect and conducted a questionnaire survey to prove the existence of Rosenthal Effect. Meanwhile, this thesis confirmed that corporate social responsibility indeed played a mediate role in the relevance between foreign equity participation and company value.