Equity Structure And Corporate Social Performance:the Regulating Effect Of Media Governance

Corporate social performance is the result of stakeholder management behaviors as well as company maximizing its economic performance. In different situations, CSP’s category is different, and the connotation of CSP is also different. In the incomplete governance environment, facing the external and internal governance environment, Companies building their own development and social responsibility strategies can never away from the surroundings. CSP is extrinsically driven and intrinsically driven in the same time. For a joint stock company, in all of its equity, equity structure is formed by shareholding ratio and its relationship to each other. Equity structure is the property right basis of corporate governance, is also the decisive factor to constitution and operation of company’s internal governance mechanism. As well, Media governance as a form of external governance, it inevitably affects the interaction between ownership structure and corporate social performance.Therefore, our research will use the stakeholder theory to study CSP under china situation. Taking 636 manufacturing firms from Chinese stock market between 2006 and 2011 as object of study, we study whether the company’s ownership structure has influence to the CSP, and we study how media governance affects the interaction between ownership structure and CSP.This paper use empirical research methods. From the data analysis results, we find that, as one of the important factors of the company’s internal governance, the shareholding structure has a significant effect to CSP. In equity structure, institutional ownership proportion is larger, CSP is higher; the ownership concentration is higher, CSP is lower. In addition, the results also show that media governance as a form of external governance plays a certain role in the interaction between ownership structure and CSP. These results enlighten us that we should attach importance and actively guide to the healthy development of all kinds of institutional investors; Strengthen internal management, improve the ownership structure, form the structure of ownership balance; We should improve the media governance environment, and strive to create market economy environment for improving CSP at last.