The Theoretical Analysis And Empirical Evidence Of Social Responsibility, Happiness And Corporate Value

In the twelfth five-year plan, happiness has become a hot word. Happiness is a comprehensive evaluation of life satisfaction and individual emotional state, which reflects concern and feelings about the quality of their own life. Improving people’s quality of life depends on the material and non-material wealth, while the realization of all this is inseparable from enterprises, who create much wealth for the community. Enterprises have become a powerful force of today’s social and economic development. As a result, the author, from this point, thinks if enterprises should play an important role in the process of enhancing happiness. What is the impulse? How to play a dynamic role?Problems of Corporate Social Responsibility have always been a hot research point. In this paper, based on the theory of social responsibility and happiness factors, the author first theoretically elaborates the intrinsic link between social responsibility and happiness, and presents the first hypothesis:the more the degree of corporate social responsibility is, the higher happiness of the area is. In order to verify the relationship between social responsibility and happiness, the author establishes a model to reflect the link between them, based on previous studies of social responsibility evaluation index system, through factor analysis to quantify the degree of corporate social responsibility. Enterprise’s financial goal is to pursue maximization of enterprise value. Then, is it inconsistent with the company’s financial goals if they contribute their own strength in the process of improving happiness? In order to dispel the doubts, based on the theory of enterprise value and the theory of agency costs, this paper presents the second and third hypotheses:First, the region happiness can improve the enterprise value; second, compared with private enterprises, state-owned enterprises can get greater value under the areas of higher happiness. In order to verify these two assumptions, the author constructs a multiple linear regression model between happiness and enterprise value. It screened 4052 listed companies issued A shares in Shanghai and Shenzhen stock market from 2010 to 2012 as the research sample. Through Logistic regression and multiple linear regressions, it drew main conclusions of this paper:corporate social responsibility will help improve area happiness levels, while raising the level of happiness is also conducive to the increase of enterprise value; this role for the state controlled enterprises is more significant.The main significance of this study is that it sorts the logical relationship between happiness, social responsibility and corporate value, finds a virtuous circle between them that would encourage companies to contribute its own strength of improving well-being in the region. The potential innovations include three points as follows:First, this paper researches the role of companies in enhancing happiness based on the current hot topic; Second, the use of factor analysis method quantifies the extent of corporate social responsibility; Third, happiness is introduced into the research areas of corporate social responsibility, achieving a sense of happiness and corporate governance issues crossover study.