Study On The Impact Of Commercial Banks' Social Responsibility On Financial Performance In China

In the context of economic globalization,countries suffered more and more economic shocks.The traditional theory that put the shareholders in the first place and one-sided pursuit of shareholder profitability has faced an unprecedented challenge,while the birth of social-responsibility theory and stakeholder theory has provided a new research method for the operation of enterprises.Because of its strong economic strength and wide influence,commercial banks have great influence on guaranteeing the smooth operation of the economy and improving the national standard of living.Therefore,as the backbone of the economic development,commercial banks should pay more action in the social responsibility than the average business.However,whether the social responsibility can bring economic growth or not,it is the problem what commercial banks considered most,and it is also the hot topic of acaidemic discussion.Therefore,this paper deeply researches the relationship between commercial banks' social responsibility and their financial performance in theoretical and empirical perspectives,and provides some theoretical guidance for commercial banks.Based on the stakeholder theory and the actual situation of China s commercial banks,this paper divides the stakeholders of commercial banks into seven dimensions:shareholders,customers,employees,government,supervisors,communities and environment.And then this paper analyzes the content of social responsibility and its transmission mechanism to financial performance.In the empirical aspect,this paper uses ROA as the measure of financial performance of commercial banks,and uses EPS,Int,Stae Tax,Loa as indicators of the social responsibility to shareholders,customers,employees,government arnd supervisors,with the construction of panel data model,the paper discuss the relationship between the commercial banks' social responsibility and its financial performance.The research shows that the social responsibility of commercial banks will have a certain impact on their financial performance.Specific to each stakeholder,whether in the long term or in the short term,if commercial banks actively carry out their social responsibility to shareholders,employees,governments and supervisors,it will bring some growth in their financial performance.While in the terms of the responsibility to customers,if commercial banks pay too much interest for customers,it may increase the burden on banks,and it is not conducive to the financial performance growth.Therefore,commercial banks should change their development concept.They should use business innovation and service promotion to attract more customers rather than high interest.Finally,under the context of external environments and stakeholders,this paper gives some suggestions on how to improve financial performance through the implementation of social responsibility for commercial banks.