The Inter-temporal Influence Of Corporate Social Responsibility On Financial Performance In The View Of Ownership Structure

Since Britain blew the horn of the industrial revolution in the 1760s,the development of world economy has entered a new era.However,as the enterprises,capital and scale have been experiencing a rapid expansion,serious social problems such as employee benefits,resource consumption and environmental pollution,have quietly come into the sight of people.As a result,not only do entrepreneurs show great interest on the social responsibility,but also the debate on the theories of social responsibility have become a heat point in the academic field.Since the Third Plenary Session of the 11th Central Committee of the Chinese Communist Party,China's economy has developed rapidly with the instruction of one of the fundamental state policies---the reform and opening-up policy.Nevertheless,while the enterprises are chasing the economic benefits blindly,the conflicts of interest between different stakeholders including environment,economic resources as well as social organization have been highlighted.As this phenomenon can be attributed to the lack of the consciousness on corporate social responsibility,the scholars in our country have already begun to explore the academic field of corporate social responsibility based on China's situation,in order to help China's listed companies to seek a feasible way for sustainable development.According to the researches in the academic field,financial performance measurement is regarded as one of the effective measurable indicators on the operation condition and level of development for China's listed companies.In the academic field,it has come to almost the same conclusion on the relationship between financial performance measurement and corporate social responsibility:social responsibility can enhance the competitive advantage in the long term.From the perspective of future development,corporate social responsibility has a positive effect on the financial performance.However,there are different conclusions on the ground of the empirical studies about the relationships between these two concepts,including positive,negative as well as uncorrelated.In addition,as an important research angle in studying the relationships between financial performance measurement and corporate social responsibility,corporate governance has already become a new trend in modern social responsibility research area.Although ownership structure is seemed as the footstone of the corporate governance,there is still few studies consider the influence of this factor when studying the effect of corporate social responsibility on financial performance measurement.This paper tries to combine the theoretical and empirical research methods,considering the difference due to the time lag when it examines the influence of corporate social responsibility on financial performance measurement.On this basis,it also discusses the impact of the ownership structure on the relationship financial performance measurement and corporate social responsibility from both the qualitative and quantitative aspect to inspect the effect of different ownership structures play if differ.This paper contains the following six parts.The first part,introduction.Tell this paper's background and research significance in detail,briefly point out the method,purpose and overall framework of this paper,and summarize the innovation points of this paper.The second part,literature review.Review and comment on the literature on three aspects,which are the concept and measurement of corporate social responsibility,the effect of corporate social responsibility on financial performance,as well as of the influence of ownership structure on the relationship between corporate social responsibility and financial performance measurement.The third part,related theories and hypotheses.First of all,define the basic concepts covered in this paper.Secondly,illustrate the relevant theories,for instance,stakeholder theory,social impact hypothesis,the principal-agent theory as well as information asymmetry theory.And finally,analyze the mechanism of how the above theories can have an impact on the research subjects and put forward the hypotheses of this paper.The fourth part,research design.According to the proposed hypotheses of the prior part,screen and process the relevant data,select appropriate research variables,and establish an effective research model.The fifth part,empirical test.Firstly,this paper carries out a regression analysis of financial performance model,and defines the dependent variable.Secondly,this paper carries out a descriptive statistics and correlation analysis on various variables,form the basic impression of the selected variables.Then,there is a regression analysis on relationship between corporate social responsibility and financial performance measurement under different kind of ownership structure to verify the relevant hypotheses of this paper.Finally,the robustness test will be given after altering the methods and variables.The sixth part,research conclusion and suggestions.Summarize the above empirical research results,concludes this paper 's research conclusion,put forward the corresponding countermeasures and suggestions from both the angles of government and enterprise itself,and meanwhile,point out the limitations of this paper.According to the results above,the effective undertaking of social responsibility may benefit the enterprises' financial performance.Moreover,there is a stronger positive effect of the corporate social responsibility on financial performance measurement in the early stage compared to the current period.After introducing the ownership as the metavariable,the paper finds that there is no observable difference in the nature of enterprise's property right between the state-owned and non-stated-owned enteprises,considering neither the influence itself on the financial performance measurement nor the combined effect with corporate social responsibility on financial performance measurement.Additionally,the higher the institution shareholding ratio in the listed company,the more attention the enterprise may pay in the performance of corporate social responsibility and also the more significant effect on financial performance measurement.What is more,the ownership concentration can be helpful for the improvement of enterprise's financial performance measurement.However,over-concentration may also weaken the performance of enterprise's corporate social responsibility.Furthermore,an efficient and effective check-and-balance ownership structure has a positive influence on the relationship between corporate social responsibility and financial performance measurement.This suggests there is no accordant with the effect of ownership structure on the relationship 'between corporate social responsibility and financial performance measurement.The innovation of this paper is the novelty of the research topic and the thorough thinking of content of the research:after introducing the inter-temporal angle to the research of the relationship between corporate social responsibility and financial performance measurement,this paper verifies the influence of temporal and inter-temporal corporate social responsibility over of financial performance does have a difference.Furthermore,the paper also gives a thought of the ownership structure as a metavariable and subdivides it based on various standards,in order to inspect the different effect on the research of relationship between corporate social responsibility and financial performance measurement,this provides the reference for how the enterprises' can improve their social responsibility in the view of the ownership structure.