Social Responsibility, Risk Management and Financial Performance of Military Enterprises

Abstract

How to make a benign interaction between military enterprises’ social responsibility and financial performance is of great significance for military enterprises to actively undertake social responsibility, but the academic research on corporate social responsibility and financial performance has not reached a consistent conclusion, and there is a lack of intermediate variables in the study of the relationship between the two. Taking the listed companies of the A-share military industry in 2011-2019 as the research sample, the relationship between military enterprise social responsibility and financial performance and the role mechanism of risk management were explored. It is found that the social responsibility of listed military enterprises positively affects financial performance; corporate social responsibility will promote corporate risk management, which can significantly improve corporate financial performance, that is, risk management plays an intermediary role between corporate social responsibility and financial performance. The research conclusion provides practical guidance and experience reference for military enterprises to clarify the relationship between social responsibility and financial performance and its functional mechanism.