Research On The Interactive Relationship Between Social Responsibility And Financial Performance Of Listed Companies

In recent years,the development of companies is built at the expense of the environment in order to meet people's needs whose character is high energy use and strong pollution,resulting in serious social problems such as ecological environment.Cooperated with the world,China draws more and more attention to social responsibility.But,as a profitable organization,enterprise's purpose is to achieve the maximum benefit.Would they take their social responsibility and improve it?What is the effect of social responsibility to the financial position of the enterprise?And how does it work?Meanwhile,what is the effect of a company's financial position to its social responsibility?All these are the problems need to be studied in this paper.Combining theory and empirical analysis,this paper gets the corresponding conclusions.First of all,this article states briefly research about the theory of corporate social responsibility,and the study of the relationship between corporate social responsibility and financial performance.Summarizes the number of literatures whose conclusion of the relationship between corporate social responsibility and financial performance is positive correlation,negative correlation,or not related.Second,review theoretical assumptions of the relationship between corporate social responsibility and financial performance,and emphasis mostly on social impact assumption and available funds assumption for the following study.At the same time,this paper explains the objective conditions where the social responsibility effects financial performance,establishing the logical link between the social responsibility and financial performance.Finally,contact with the descriptive statistics analysis,correlation analysis and regression analysis,this paper uses panel data fixed effects model to examine the correctness of the above theory.The empirical results show that:the current corporate social responsibility and the current financial performance have significant positive correlation.From the regression results,the current financial performance has significant positive effects on the current corporate social responsibility while the lag issue of financial performance has significant positive effects on corporate social responsibility,and the latter influence is bigger than the former.In turn,the performance of social responsibility on financial performance is not significant positive,one lag of the social responsibility also has not significant positive influence on financial performance.Of the possible reasons for this result is that we don't have the market of responsibility and supervision and feedback mechanism of social responsibility.There is a need to strengthen market reforms on the social responsibility.