Research On The Influence Of Corporate Social Responsibility On Financial Performance

The impact of Corporate Social Responsibility(CSR)on Corporate Financial Performance(CFP)has always been a topic of theoretical exploration.Due to the neglect of key variables,the empirical results are inconsistent.In the environment of intense business competition,corporate social responsibility has become an important way for enterprises to improve and maintain the relationship between stakeholders and cultivate reputation capital.Corporate social responsibility as a tool for the creation of enterprise value requires two prerequisites: first,the fair market environment and the responsibility of the market,followed by the need of corporate responsibility oriented innovation.The institutional environment is the basis of the the ethical advantage transformed to the enterprise performance,and the social responsibility oriented innovation input is the key factor for the transformation of the enterprise ethics advantage to the value promotion.With the cooperation of the institutional environment(external factors)and corporate social responsibility oriented innovation inputs(internal),can enterprises achieve the dual goals.In this paper,we use the data of corporate social responsibility of Listed Companies in China from 2010 to 2015.First,the empirical analysis of the impact of corporate social responsibility on corporate performance,and then verify whether the institutional environment to regulate the relationship between them.The results show that corporate social responsibility has a significant positive relationship with corporate financial performance,while the institutional environment will enhance the positive relationship between corporate social responsibility and financial performance.Enterprises to fulfill their social responsibility to form a reputation capital and create value,need a good market environment and legal environment for protection.So we need to deal with the relationship between the government and the market,advocating free competition,and create a reasonable allocation of resources,the institutional environment of fair competition,cultivate the social responsibility of the market,to provide effective incentives to fulfill social responsibility,improve the social responsibility information disclosure,enhance corporate visibility.Thirdly,this paper studies the mechanism of the effect of technological innovation input on corporate social responsibility on financial performance.The results show that R&D investment will regulate the positive effect of corporate social responsibility on corporate financial performance,To a certain extent,it is necessary to integrate the technological innovation investment and the corporate social responsibility.These conclusions provide a solution to our understanding of the relationship between corporate social responsibility and corporate value,and to resolve the contradiction between corporate social responsibility and corporate value added.In a word,through the empirical analysis,we think that the relationship between the government and the market can provide an effective institutional supply for the fulfillment of corporate social responsibility in the context of supply side reform.Cultivating effective social responsibility market is the basis of promoting social responsibility?Under the effective institutional environment supply,the enterprise will increase the the input on CSR Oriented Innovation,which will be the new momentum for the enterprise to foster the performance growth,and become the key breakthrough for the enterprise transformation and the cultivation of the core competitiveness.