Research On Listing Commercial Banks' Fulfill Social Responsibility's Impact On Its Operating Performance

Throughout nowaday's global market,the era in which enterprises simply persuit the economic efficiency is gone,along with the development of economy and the improvement of people's living standard,the original extensive operation has been unable to adapt the increasing demand for enterpeises' operation quality by the market,whether the enterprise has assumed social responsibility has become an important indicator for evaluation of the enterprise.Commercial banks are special financial enterprises,not only because of its management objects and contents,but also because of its great influence on society,thus,the negative impact it brings will be immeasurable once commercial banks didn't perform well in social responsibility.But currently,commercial banks have often been exposed of being inefficient,charging high fees,having security problems and so on,which led to public complaints and dissastisfaction.In this situation,it is undoubtedly necessary to do some research on problems ralated to commercial banks' social responsibility.Theoretically,in the short term,commercial banks have to use part of the resources for profit-oriented activities,it would affect and bring down its operating performance,but in the long run,commercial banks fulfill their social responsibilities can strangthen its core competitiveness,resulting in suatained and stable performance growth,so overall,the influence that commercial banks fulfill their social responsibility did on its performance manifest a U-shape trend.This paper uses the internationally advanced EVA model to evaluate the performance of16 listed banks in China first,and draws the visual results ofboth horizontal and vertical,then constructs a framework of social responsibility evaluation for commercial banks,including 5 first-level indicators and 15 second-level indicators,the weight of each index are derermined by AHP,and the social responsibility of listed commercial banks in China are evaluated.Finally,this paper use Eviews to return the performance and the social responsibility scores,and draw a conclusion which support this paper's assume that commercial banks did have a U-shape trend to their performance by fulfill social responsibility.The possible innovation of this paper is,most of the current literature that research China's commercial banks' social responsibility are focused on thetheoretical analysis of the relationship between those two,or prove whether fulfill social responsibility will have a positive impact on performance,the U-shape trend between them is less mentioned.This paper prove that the trend of decreasing first and then rising did exist among China's listing banks.