An Empirical Study On The Impact Of Social Responsibility On Financial Performance Of Coal Industry

Since the concept of corporate social responsibility was put forward,the relevant discussion in the academic circle has been continuing,and enterprises have been exploring social responsibility.In the last two years,the problem of overcapacity and others in coal industry emerged,the financial performance level of enterprises also declined.And coal enterprises have deeply realized that if they want to achieve sustainable development,they must actively fulfill their social responsibility.But the activities which fail to generate economic benefits will not be sustainable and it is important for enterprises to focus on social responsibility and pay attention to economic interests.Therefore,it is necessary to understand the impact of social responsibility on the financial performance of coal enterprises,and provide theoretical support for enterprises to fulfill their social responsibility actively.Furthermore,the duty behavior of social responsibility of coal enterprises may become a tool of improper earnings management and dust the eyes of stakeholders,which can not only improve the financial situation,but also lower the level of financial performance.Therefore,the necessity of studying the impact of coal industry social responsibility on financial performance based on the perspective of earnings management is easy to see.This paper firstly takes listed companies in the field of coal producing and selection from 2008 to 2016 as research samples,on the basis of Stakeholder theory,Principal-agent theory and Game theory to conduct a mechanism analysis among the corporate social responsibility,earnings management and financial performance,as well as to build a model.Then this paper further selects and manages the data through the CSMAR data base and the company’s annual reports.The corporate integral score of social responsibility is calculated by the Carroll model,and is regarded as an explanatory variable;the alternative index of earnings management is reports.The corporate integral score of social responsibility is calculated by the Carroll model,and is regarded as an explanatory variable;the alternative index of earnings management is computed by the Eviews8.0 software,in other words,the discretionary accruals which are regarded as a moderator variable;meanwhile,the financial performance index ROA is regarded as an explanatory variable.The results are got by using the panel data analysis:(1)corporate social responsibility in the current period plays a positive role in the current financial performance level;(2)it still plays a positive role in the financial performance in the first and second lag periods,but its effect weakens;(3)earnings management plays a reverse regulatory role in the positive correlation between corporate social responsibility and financial performance.Finally,based on the empirical conclusions and the industry status analysis,this paper puts forward suggestions to different subjects:the internal enterprise should attach importance to social responsibility;the government and the society should highlight the external effectiveness,and play the role of supervision.