Empirical Study On The Relationship Of CSR And CFP On China's Listed Insurance Company

In recent years, the CPC Central Committee and The State Council have attached great importance to corporate social responsibility and innovation. When a company or an industry gain some economic benefits, they should actively perform their responsibilities to the country, the society, the people and stakeholders, achieving harmonious and healthy development of the industry, economy, society and people's livelihood. On May 19,2011, chairman of The China Insurance Regulatory Commission (CIRC), Wu Dingfu presented at the annual meeting of the academy in 2011 that we should develop the value of the insurance industry, and insurance industry should actively undertake corporate social responsibility, for the sake of service economic and social development. On July 8,2014, CIRC issued its first white paper which is "China's insurance industry social responsibility". The "white paper" consists of five parts:always be with you, concern about people, the responsibility of the country, public welfare establishments, and future in hand, which show the insurance industry undertakes corporate social responsibility according to its characteristic and actual development. On December 28,2015, CIRC published the guidelines of corporate social responsibility, which reflects the attention and determination of CIRC. The concrete practice from the insurance company, the China Life Insurance published "China life insurance corporate social responsibility report" in 2007; the Ping An Insurance issued "Ping An Insurance corporate social responsibility report" in 2008. According to Rankings CSR ratings about a-share listed corporate social responsibility information disclosure, which shows financial insurance industry occupy half in rating score in the top 10 of the CSR report, especially the Ping An Insurance in the first place.The China Life Insurance and the Ping An Insurance undertake corporate social responsibility with real actions. However, the insurance industry also has some problems on the performance of the corporate social responsibility when compared with other industries, with the international and the whole society expectation of the insurance industry, and we could find that many insurance companies haven't realized the importance of social responsibility. With the vulgar management and the denotative development, the insurance companies haven't put corporate social responsibility and the pursuit of economic efficiency maximization in the same position. In the final analysis, the insurance companies don't know clearly the relationship between corporate social responsibility and the corporate financial performance, and also have no idea that whether undertaking corporate social responsibility can improve the financial performance of the insurance company. Insurance company management is plagued by the problem, which is very worth studying through theoretical and empirical.Based on the background above, the author use for reference the domestic and foreign studies of the relationship between the corporate social responsibility and the financial performance on the basis of theoretical and empirical studies, attempting to base on the perspective of stakeholder theory, and defining the social responsibility of insurance company, using A-share listed insurance companies from the period of 2008 to 2014 as the research objects, through the establishment of the insurance corporate social responsibility evaluation index from five angle, and the insurance company financial performance evaluation indicators, using the dynamic model system GMM method, the empirical research on China's a-share listed insurance corporate social responsibility impact on financial performance across the period. Finally draw the conclusion:firstly, the listed insurance corporate social responsibility impact on financial performance of positive promoting effect of long-term and hysteresis:listed insurance companies undertake corporate social responsibility, which may see no effect or even have a negative impact in short term, will have a significant positive promotion effect on the corporate financial performance in the long term. Secondly, the influence of different angles of social responsibility has different effects on financial performance.Research conclusion of this paper is beneficial to the insurance company operators and managers to understand the importance of corporate social responsibility from the practice, and the importance of properly handling the relationship between the "social responsibility" and "profit maximization", and helps to improve the consciousness of corporate social responsibility from the practice. At the same time, the awareness would turn into effective behavior of the enterprise, and the concept of "social responsibility" will be introduced to the governance mechanism of insurance companies to provide empirical evidence, theoretical support and policy suggestions. In order to better promote harmonious and healthy development of insurance industry, and promote the international competitiveness of Chinese insurance companies.Around this key problem, this paper consists of six chapters:The first chapter:the introduction.The second chapter:theoretical analysis of relationship between corporate social responsibility and financial performance in Chinese insurance companies. The first section introduces the essential theoretical foundation of the corporate social responsibility:stakeholder theory; the second section is the definition of corporate social responsibility of insurance company on stakeholder perspective; the third section is the conduction mechanism of how corporate social responsibility affect financial performance.The third chapter:listed insurance company's corporate social responsibility and financial performance indicators and its calculation. The first section is the calculation of corporate social responsibility; the second section is the calculation of financial performance; the third section introduces the selection of control variable; the fourth section is data collection; the fifth section is calculation results of indicators and its description; the sixth section is descriptive statistics of relationship between corporate social responsibility and financial performance.The fourth chapter:empirical regression analysis of the relationship between corporate social responsibility and financial performance. The first section is the influence of the current corporate social responsibility on financial performance; the second section is lag issue of corporate social responsibility impact on financial performance; the third section is lag of two phase of the impact of corporate social responsibility on financial performance; the fourth section is static panel regression results.The fifth chapter:policy suggestions on how to strengthen the insurance corporate social responsibility. According to the research conclusion and its reason analysis, the author proposes some policy suggestions to perfect the insurance company's corporate social responsibility in our country from the internal and external governance mechanism in insurance companies. On the one hand, which is from the insurance company internal governance mechanisms:embedding deeply the corporate social responsibility into the company's long-term business strategy. On the other hand, which is from the insurance company external governance mechanisms:disclose social responsibility information of its own accord and introduce third-party verification.The sixth chapter:the limitations and future research prospects about this paper.