Research Of Public Companies’ Value Creation In China Based On Corporate Social Capital

To enchance the demand of practice, thorough study on source of value and value creation has now become an important problem for discussion in management. The goal of an enterprise lies on the creation and realization of value, which is the most essential factor that helps the enterprise to survive in the cruel market competition and achieve continuous development. Accordingly,to establish systematic and value-creation-centered management and to estimate an enterprise’s managing achievement with value so as to create "ever-living" corporations is the ultimate goals of enterprise’s development.With the rapid development of information technology, accelerated pace of economic globalization, WTO accession, and structural changes in our domestic economy, China’s the Pressures of survival of our enterprises are becoming heavier day by day. In this case, the pursuit of continuous growth has been the problems which are placed in front of every business manager. Neo-classical economics which are based on the analytical framework of the complete rationality and the perfectly competitive market hypothesis can not make a satisfactory answer to explain many economic phenomena. However, the proposal put forward by social capital provides a new interpretation of the economics perspective. As a result, it will be a reference for reasonable explaining the economic and enterprise value growth.Social capital is one of the most important capitals the enterprises own, and it consists the core competitive power that accelerates the development of corporations. Empirical study shows that there exists notable positive correlation between the inner and outer social capital of enterprises and the behavior of the enterprises. Through the approaches of entrepreneurs, staff members, other enterprises, government, media, community and Internet social capital affects the enterprises greatly.This paper defined the concept of the value of the company, with the guidance of collective choice theory, stakeholder theory, enterprise resource theory. Explaining the source of value is the value of the company to create the driving factor. At the same time, through systematic research of the concept and classification and constituent elements of enterprise’s social capital, standing in the angle of stakeholder corporate, social capital can be divided into internal and external corporate social capital. To external enterprise social capital, including government relationship capital, supplier relationship capital, customer relationships capital, competitors relationship capital, community relations and to internal enterprise social capital, including the management and staff capital. Through principal component analysis, extracting indirect enterprise social capital and extracting direct enterprise social capital, respectively by them as explanatory variables, consider the corresponding control variable, through the construction of an empirical model to test the value creation effect of enterprise social capital, provides the new growth point for the enterprise value creation, the practice of enterprise management to provide effective guidance and advice.