The Study On The Effect Of Financial Performance And Political Association On The Private Listed Companies' Social Responsibility

Since the reform and opening up,China's private enterprises have developed rapidly.With the rapid development of private enterprises,a series of social problems have gradually erupted,such as food safety,labor disputes and environmental pollution and those social problems have aroused widespread concern in the community.The sustainable development has become our goal,so corporate social responsibility has attracted wide attention from all sectors of society.In 2015,as many as 1703 listed companies in China published social responsibility reports,of which 60%are state-owned enterprises,the amount of private enterprises to disclose the social responsibility report is relatively 33.2%,and the quality are quite different.With the rapid development of private enterprises,It is hoped that private corporate social responsibility can have a better performance.Therefore,this paper,from the perspective of social responsibility motivation,utilizes the method of empirical analysis to analyze the impact of financial performance and senior political relations on private corporate social responsibility,in order to promote private enterprises to fulfill their social responsibility.Since the concept of "social responsibility" was firstly put forward in the 1960s,the need to fulfill social responsibility has been widely recognized by all sectors of society.At present,the research on corporate social responsibility mainly focuses on motivational research and information disclosure.At the same time,the external environment and internal resources are the focus of the motivation of social responsibility.The most important internal resources are the financial resources,if the enterprises have sufficient financial resources,they will have spare capacity to fulfill their social responsibilities.Capital supply hypothesis that financial resources are a key element of corporate social responsibility.On the external environment,the institutional environment and media pressure affect corporate social responsibility mainly.State-owned enterprises are under pressure from the media and the institutional environment.Therefore,the social responsibility performance is better.And the private enterprises receive less attention and fulfill social responsibilities mainly based on the interests of motivation.In addition,during the period of China's economic transition,some private enterprises obtain political resources by establishing political connections,and the political connection also makes the enterprise facing different external institutional environment,connections of representatives participate in the election to become the National People's Congress or CPPCC members,and cause more attention from the public media,so the enterprises face more stringent external institutional environment.Government official connections are generally current government officials,political connections have been established,the external environment is relatively loose.So the impact of different types of political connections on corporate social responsibility is also different.In this paper,empirical analysis is used to study the influence of financial performance and political connections on the social responsibility of private enterprises.Based on the legitimacy theory,this paper studies the role of political connections.Based on this,this article employs the following six parts to verify:The first part is the preface.This paper expounds the research theme from the realistic background and the policy background,and put forward the research significance,the train of thought and the method.At the same time,it puts forward the innovation and the insufficiency of this article;the second part is the literature review.Summarize the contents of domestic and foreign scholars' research on the relationship between financial performance,political connections and corporate social responsibility,find out the deficiency of the existing research,and find the support point for the topic;the third part is related concepts and theoretical analysis.Firstly,the paper expounds the characteristics of private enterprises,and then elaborates four theories,such as stakeholder theory,capital supply hypothesis,resource dependence theory and legitimacy theory,so as to support the research hypotheses.The forth part is the empirical research design part.Based on the above theoretical analysis,at the same time,the related research variables are defined,and the research samples and data sources are explained.The fifth part is the empirical test.In this paper,regression analysis was carried out using the Stata 12.0 to verify the hypothesis.The sixth part is the conclusion.By studying the empirical data of A-share listed private enterprises in Shanghai and Shenzhen Stock Exchange between 2012 and 2015,this paper draws the following conclusions:(1)Private enterprises with good financial performance are able to fulfill their social responsibilities from the six stakeholders,and willing to participate in charitable donations and other public welfare activities.(2)The political connections of private enterprises can affect the fulfillment of corporate social responsibility,among which connections of representatives can fulfill the social responsibility more positively,and the effect of government official connections is not statistically significant.(3)The connections of representatives can positively adjust the relationship between financial performance and corporate social responsibility,and the extent of the effect is intense than government official connections.Based on the perspective of legitimacy theory,this paper takes the listed private enterprises as samples to study the relationship between financial performance,executive political connections and corporate social responsibility performance,so as to provide relevant suggestions for the private enterprises to fulfill their social responsibilities.