Study On The Impact Of Corporate Social Responsibility On Financial Performance

Researching on corporate social responsibility theory in the past years,the relationship between corporate social responsibility and corporate financial performance has occupied a very core position.However,although the scholars paid great attention to it,there is still no unanimous conclusion on the relationship between corporate social responsibility and corporate financial performance,from positive correlation to negative correlation,to nonlinear correlation,even irrelevant,all possible relationships are supported by some empirical evidence.There are two possible reasons for Such diverse results:One is the choice of time.Zhang zhaoguo points out that the existing research about the corporate social responsibility impact on financial performance is almost static and one-way investigation,and rarely consider the lag between the two.If the difference in time selection is not considered,it is difficult to obtain reliable conclusions.The other is the problem of action.Although there are so many theoretical and empirical analysis of different perspectives,but the mechanism of corporate social and financial performance is still“ black box ”,academia is not consensus.about the impact of corporate social responsibility on financial performance.Based on the above analysis,this paper attempts to extend and expand the study of the relationship between corporate social responsibility and financial performance from two dimensions based on the existing literature:(1)whether the different choice of period change the relationship between corporate social responsibility and financial performance;(2)The role corporate reputation play in the relationship between corporate social responsibility and financial performance.In order to answer these two questions,this paper takes the listed companies in Shanghai and Shenzhen stock market from 2011 to 2015 as samples,and uses content analysis and substitution of variables to measure corporate social responsibility and corporate reputation.Using correlation analysis and multiple linear regression analysis to discusses the relationship between corporate social responsibility and long-term financial performance,the relationship between corporate social responsibility and short-term financial performance,and what role of corporate reputation play in it.Aroundding these issues,First,based on the existing empirical research,the paperputs forward the research hypothesis on the basis of the analysis,and uses empirical research methods to test the hypothesis.Throughing research found the following problems:(1)Enterprises to fulfill social responsibility is conducive to improve the reputation of the enterprise;(2)The impact of corporate reputation on short-term financial performance is n ot significant,but has positive impact on long-term financial performance;(3)Enterprises to fulfill social responsibility is no significant effects on short-term financial performance,but it is helpful for the improvement of enterprise performance in the long run;(4)In the impact of corporate social responsibility on corporate financial performance,corporate reputation plays an intermediary role.Then,aiming at the above research conclusion,this paper put forward the corresponding suggestions and countermeasures from the aspects of enterprise and government.