Research On Social Responsibility And Financial Performance Interaction Effect About MNCs In China

With the rapid development of China's economy,multinational companies are increasingly inclined to set up subsidiaries or joint ventures in China.Although multinational companies bring a lot of advanced technologies and management experience,it also brings negative influence.From BOSCH,SIEMENS dishwashers have been recalled because of fire hazards,Dumex milk was traced involving Botox etc,these problems all give evidence that the multinational companies lack of sense of social responsibility.Multinational enterprises' social responsibility consciousness is weak,the reason is not clear the relationship between social responsibility and financial performance,one-sided think that taking social responsibility is to reduce profits.So the study of relationship between China multinational corporate social responsibility and financial performance has a very important significance.Based on the stakeholder theory and social responsibility theory,through theoretical analysis,put forward the research hypothesis.The research sample from the United Nations Conference on Trade and development report "World Investment Report"(2014-2015),according to the company's overseas assets arrangement,the top100 non-financial companies,selecteing having the continuous data 55 multinational companies in China.At the same time build the simultaneous equation model,using the SPSS to carry out the correlation analysis and regression analysis,and by changing the financial performance indicators for robustness test.The results show that:(1)Multinationals in China social responsibility and financial performance of the current period showed significant positive correlation,the lag of financial performance has a significant influence on the social responsibility;(2)corporate social responsibility on financial performance showed a significant positive correlation,the influence of social responsibility has a lag effect on financial performance,that illustrate the impact of corporate social responsibility has profound lasting.The thesis consists of five parts.The first is introduction.Discussing the research's background,and puts forward the research question,then literature review mainly including three aspects:(1)the review of literatures on corporate social responsibility;(2)the review of literatures on corporate social responsibility and financial performance;(3)review and comb about multinational companies' research on corporate social responsibility and financial performance.In the process of research found that the third aspects related research is less,so this article research direction is put forward.Thesecond,related concepts and theoretical basis.This part is to define the relevant concepts,and then put forward the theoretical basis.Mainly includes the corporate social responsibility theory and stakeholder theory.Finally on the basis of stakeholder theory Outlines multinational company stakeholders;The third study design.First of all,the sample selection and data source introduction,selection of variables and measurement,research hypotheses and model building.The fourth empirical analysis,using SPSS for descriptive analysis,correlation test,then using Eviews8.0 to GMM estimation model test,the final use of ROE as the financial performance of alternative variable for robustness test.Finally according to the results of the empirical,analysis of multinational corporations in China to perform the social responsibility and financial performance.The fifth research conclusion,suggestions and deficiencies.Analysis the result of empirical research,first of all,according to the analysis conclusion is given the corresponding policy recommendations.Finally,pointed out the deficiency of this article studies the existence,the next research provide reference and help.According to the research results,the author respectively from the perspective of multinational companies in China and the Chinese government gives corresponding Suggestions,designed to help multinational companies in China to better fulfill the social responsibility to improve the performance at the same time;The Chinese government should adopt more rational,leading multinational companies in China to the balance of interests in the social responsibility of game.