A Study On The Interrelation Between Social Responsibility Information Disclosure And Corporate Performance

Taking on social responsibility and disclosuring the social responsibilityinformation is inescapable responsibility to the company. But because enterprisesfocus on their own profits, neglect of the interest of the public, environment,consumers, government, and other stakeholders. The social responsibility events oftenhappen, such as SanLu milk powder incident and drainage oil. Information of thesocial responsibility disclosure is lag and influence the interests of the stakeholdersseriously. Companies disclosure information selectively, sometimes underreported. So,it is important to research on the information of the social responsibility disclosure.Based on the backgrounds, we research how the company’s financial performance andsocial performance impact on social responsibility information disclosure, and studythat the level of social responsibility information disclosure play an active role inimproving the company’s financial performance and social performance.First, this paper reviews the literature on social responsibility informationdisclosure, including the content, measurement methods, factors and economicconsequences. Second, the paper analyzes the social responsibility informationdisclosure from the legitimacy theory, the stakeholder theory, the theory of sustainabledevelopment, the corporate citizenship theory, resource hypothesis theory and signaltransmission theory. Based on the literature review, from the stakeholder theory, thepaper build corporate social responsibility information disclosure index indicatorswith the content analysis and calculate corporate social performance indicators withthe factor analysis. After considering all factors, the paper select the nature of thecompany, industry characteristics and company size as control variables, and buildfour mathematical models. After correlation analysis, independent T-test, regressionanalysis and robustness analysis, the paper finally conclude that the company’sfinancial performance and social performance is the better, the level of socialresponsibility information disclosure is the higher, and if the level of corporate socialresponsibility information disclosure is increased, it will bring to improve thecompany’s financial performance and social performance. Finally, the papersummarizes the results and proposes the future research directions and the policyrecommendations.