Empirical Analysis On Corporate Social Responsibility Information Disclosure And Stock Performance

One of the negative effects of rapid economic development is that someenterprises are concerned about economic interests while ignoring fulfill socialresponsibility.Corporate social responsibility issues related to the implementation ofthe strategy of sustainable development. Constant exposure of the defect of socialresponsibility scandal led to an unprecedented attention among all sectors of thecommunity of corporate social responsibility. Social responsibility theory appeared inWestern countries in the early20th century, with the constant further development, allsectors of society is deepening the importance attached to social responsibility. In2006China promulgated a new COMPANY LAW which explicitly requirescompanies to commit social responsibility. To a modern enterprise, corporate socialresponsibility is no longer appendages, but is directly related to the survival anddevelopment of enterprises. What is the situation in China’s listed companies? Whatis the characters of social responsibility? Whether can the listed companies promotethe stock’s price through the improvement of the disclosure level of socialresponsibility information? This paper attempts to answer these questions.This article choose A-share companies of the Shanghai Stock Exchange andShenzhen Stock Exchange as samples, using event study methodology and multipleregression analysis to examine whether there is correlation between the quality ofdisclosure of corporate social responsibility reports and stock cumulative excessreturns.This article is divided into five chapters from the content. The first chapter is forintroduction of background and significance, describes the purpose of the study,research methods and research framework of this article. The second chapter istheoretical basis of the article. Firstly, the article describes theoretical part related tosocial responsibility, including the origin and development of social responsibilitytheory, domestic and international literature review as well as the assumption ofsocial responsibility information with market response. The third Chapter listed the disclosure level of social responsibility information and quantificat socialresponsibility index. The article introduces the relevant indicators, based ChineseAcademy of Social Sciences Department of Economics Articles Social ResponsibilityResearch Center released the "China Corporate Social Responsibility Report Rating(2012)," Corporate Social Responsibility Report as quantitative results. Thirdly, theempirical research, using multiple regression analysis model to enterprise scale,asset-liability ratio and earnings per share as control variables for analysis. In order toanalysis whether can the listed companies promote the stock’s price through theimprovement of the disclosure level of social responsibility information. Resultsshow that the effect is not obvious, which on the other hand, reflects China’s currentcapital market effectiveness is not strong, the disclosure of the information cannot befully reflected by price. The fifth chapter mainly elaborated the innovation anddisadvantages of the article. The innovation is the authority of the socialresponsibility evaluation standard, and the disadvantage mainly because thecalculation accuracy of variable needs to be improved.The results showed that the quality of social responsibility reports fromShenzhen and Shanghai corporate sample and stock price movements are weakpositively correlated, it may be due to China’s capital market is in a weak efficientmarkets. In addition, the insufficient of public attention to the social responsibilityreport and consciousness of social responsibility, lead the information users’ attentionto the social responsibility is not enough. The lack of regulation and standards is alsothe cause of social responsibility information decision value is not correlated.