Research On The Relationship Between Corporate Social Responsibility And Financial Performance Of Internet Industry In China

In the past two decades,Chinese Internet industry has grown vigorously.It has leapt to the top of the world and entered the era of blossoming.Internet models such as egovernment,online education,internet poverty alleviation,mobile payment and social entertainment have changed people's lives.The “Internet+” model has promoted the industrial upgrading of traditional industries,and new technologies represented by artificial intelligence are changing the future.The Internet has become an important industry for China's economic development.While the influence of the Internet industry is becoming increasingly powerful,the phenomenon of its lack of social responsibility is also exposed.Whether Internet companies fulfill social responsibility conflicts with financial performance is the focus of this article.First,under the premise of affirming that the Internet industry has made tremendous contributions to China's economic development in recent years,this article takes the news of the lack of social responsibility of some Internet companies that are widely concerned nowadays as an example to elicit whether the Internet corporation performs conflicts between social responsibility and financial performance.Secondly,through the literature review,the stakeholder theory and corporate social responsibility theory,which are closely linked with corporate social responsibility,are summarized and analyzed as the theoretical basis for the analysis of the relationship between corporate social responsibility and financial performance of Internet companies.This article then sorts out the mainstream domestic and international corporate social responsibility evaluation methods and financial performance evaluation methods,summarizes the articles on the relationship between the two,and analyzes the reasons why Chinese and foreign scholars have inconsistent conclusions on the relationship between the two.Then for the specific industry of the Internet,the relationship between its social responsibility and financial performance was analyzed.Mainly include: China's Internet industry overview,the performance and lack of Internet corporate social responsibility and its impact on financial performance.Finally,based on the theory of stakeholders,this paper identifies the indicators for evaluating the performance of Internet companies in fulfilling their social responsibilities.This article collected data of 42 Chinese Internet companies listed at home and abroad from 2012 to 2016,and then based on the random effects model and the dynamic panel system GMM model,empirically analyzed the relationship between corporate social responsibility and financial performance in China's Internet industry.The results show that there are interaction and intertemporal effects between the social responsibility and financial performance of Internet companies in China.For different stakeholders,the impact of the enterprises performing their corresponding responsibilities on the financial performance of the company is different.Whether it is listed in the domestic market is a factor that affects the financial performance of Internet companies.The financial performance of Internet companies is greatly influenced by governmentrelated policies.Based on the research conclusions,suggestions were made from three aspects: Internet companies,governments,and Internet users.