Abstract
The relationship between corporate social responsibility and corporate value cause the attention of theory circleincreasingly. This paper analyzes the mechanism of the corporate social responsibility to corporate value,introducing the game model to justify the legitimacy of corporate social responsibility and demonstrate itsfunction to corporate value. At last, the corresponding countermeasures are put forward.
Highlights
The relationship between corporate social responsibility and corporate value cause the attention of theory circle increasingly
The corporate perform corporate social responsibility for their interests and maintenance, and the expected returns of the stakeholders made them pay more attentions and do their own efforts to the long-term financial targets in some unique ways, thereby the enterprise obtain long-term, stable cash inflow, together with stakeholders’ assists, both the operating risk and the financial risk are at low level, and comprehensive cost of capital is corresponding low, after the discount, the cash inflow(corporate value) increase namely that the financial goals of the maximization of enterprise value is realized
According to the definition of corporate value theoretically, this paper argues that the enterprise with dim prospects undertake more business risks, and with less corporate value, while the enterprise with bright prospects can get more future cash flow, so with great corporate value
Summary
The corporate perform corporate social responsibility for their interests and maintenance, and the expected returns of the stakeholders made them pay more attentions and do their own efforts to the long-term financial targets in some unique ways, thereby the enterprise obtain long-term, stable cash inflow, together with stakeholders’ assists, both the operating risk and the financial risk are at low level, and comprehensive cost of capital is corresponding low, after the discount, the cash inflow(corporate value) increase namely that the financial goals of the maximization of enterprise value is realized. Performance for the following aspects help to understand what is said above : 1.1 Reduce the financing costs. If the enterprise does perform like that, the investors prefer to put money into the enterprise, reduce the financial risks, and cut down the financial cost, the corporate value is increased
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