Research On Relationship Between CSR And Financial Performance

After the Chinese economic reform policy in 1978,with the reform of economic system, our national economy has developed rapidly. Especially the real estate industry, in the process of development, has gradually become the main motive force of the development of our national economy. However, the rapid development not only brings the rise of economic value, but also causes a series of social problems. Especially in recent years, due to the overheating investment, housing prices in big cities has been continually rising, real estate developers bid up property prices in order to gain immediate interests, construct unqualified buildings and do false advertising to the buyer, Other actions such as violate of the provisions to use a public green space, take advantage of the legal loopholes to do tax evasion are also very common, which negatively affects the orderly operation of the market economy. Behind these phenomena lies a problem which should be widely concerned by the whole society, which is the social responsibility of real estate enterprises. Compared with foreign countries, enterprises in China have weak consciousness to its social responsibility, many companies believe that corporate social responsibility may have bad effect on its financial performance, and that is what this article mainly aimed on:the relationship between social responsibility and financial performance of estate enterprise in our country.The entire article mainly divides into five parts:the first part mainly explains the relationship between the corporate social responsibility and the financial performance of the real estate industry; Second part is an overview of corporate social responsibility theory, which summarizes the development of corporate social responsibility theory; The third part introduces the concept of real estate corporate social responsibility and the specific object and scope of real estate enterprise social responsibility; The fourth part is empirical analysis of the relationship between social responsibility and corporate financial performance based on the stakeholder theory; and the final part gives empirical conclusion and summary.This article selects the data of 144 real estate enterprises in Shanghai and Shenzhen stock market from 2008 to 2013 as the research sample. During the research process, the author choose the accounting index ROE and market index Tobin Q value to measure financial performance of real estate enterprises, setting up two multiple linear regression model, using SPSS to give descriptive statistical analysis and correlation analysis to the collected data, and eventually concluded that there is a positive relationship between financial performance and social responsibility of real estate enterprises.