The Inter-temporal Interaction Between Corporate Social Responsibility And Financial Performance

Corporate social responsibility has been controversial in recent years,and whether the enterprises need to bear the social responsibility or not has not been determined.On the one hand,if the enterprises pursue economic benefits blindly,it will cause the production of external non-economic,at this time it will require the enterprise to assume a certain social responsibility.On the other hand,corporate social responsibility can be conductive to the development of enterprises,so the enterprises will undertake social responsibility voluntarily;but if corporate social responsibility is not helpful to the development of enterprises,even negative,the enterprises will not bear social responsibility or be passive.In fact,when the enterprises weigh the problem of whether perform social responsibilities or not,they consider more their economic interests related to developments,so the research of corporate social responsibility influence on economic benefits is very important.The research focus more on the one-way effect of CSR on CFP research of predecessors,and less on the study of the two interactive time lag effect,and according to Gu Raza Siti's research,in theory,because of the individual psychological causes,technical reasons and system reasons,time lag effect has the possibility to exist.Therefore,selecting the period between CSR and CFP study on less interaction as the research problem has important theoretical significance and practical significance.This paper builds the model of the relationships between corporate social responsibility(CSR)and financial performance that according to the inter-temporal interaction between CSR and financial performance,based on the stakeholder theory,using two listed companies in Shanghai and Shenzhen Stock Exchange in 2011-2015 as well as the score of social responsibility by clustering rating as research samples,and tests their relationships through the empirical analysis.In research,choosing the lag one or two phases of CSR and financial performance researches the lagging influence between CSR and financial performance.The empirical analysis results indicate that,firstly,CSR have positive effects on financial performance in a lag phase,namely the current and lagged effects of CSR on enterprise's financial performance is not significant;secondly,the current financial performance has positive effects on CSR,but it is unclear that the effect is positive or negative,which the total rate of return on assets(ROA)and the rate of return on net assets(ROE)have a significant positive influence on corporate social responsibility,then EBITDA and the ratio of income as a percentage of sales(POS)have a significant negative impact on social responsibility.To test the reliability of the results and enrich the researchcontents,this paper also separates the enterprises into Shanghai enterprises and Shenzhen enterprises to analysis separately.The research indicates that the conclusion of empirical analysis between the sample data which is separated to Shanghai and Shenzhen and the overall sample is consistent,and confirms the reliability of the conclusion.Based on the above research conclusions,this paper which aims at enterprises,especially state-owned enterprises,government and regulatory departments to put forward some policy suggestions,has a realistic significance to promote the development of China's corporate social responsibility and improve the enterprises' consciousness of performing the social responsibilities.