Abstract
This paper uses the data of Chinese listed companies from 2014 to 2016 as a sample to discuss the relationship between corporate social responsibility and financial performance. At the same time, it analyzes the regulatory role of corporate scale and growth opportunities in the impact of social responsibility on economic performance. The study finds that there is a significant positive correlation between social responsibility and financial performance. The scale of the enterprise reverses the impact of social responsibility on financial performance, and growth opportunities do not regulate the impact of social responsibility on financial performance.
Highlights
In 2016, after Samsung Electronics’ Galaxy Note7 mobile phone was released, more than 30 explosion accidents caused by battery defects occurred worldwide
The scale of the enterprise reverses the impact of social responsibility on financial performance, and growth opportunities do not regulate the impact of social responsibility on financial performance
Due to the differences in data sources, variable selection, analysis methods, and applied theories, the correlation between corporate social responsibility and financial performance can be roughly divided into two factions: One school of scholar support there is a positive correlation between the two variables, and another school of scholars hold the idea that there is a negative correlation between them
Summary
In 2016, after Samsung Electronics’ Galaxy Note mobile phone was released, more than 30 explosion accidents caused by battery defects occurred worldwide. On July 20th of the same year, China’s first case of air pollution litigation sentenced the defendant Zhenhua Co., Ltd. to compensate for the loss caused by excessive discharge of pollutants by RMB 21,986,600 This lawsuit warns that the listed companies should establish the bottom line of corporate social responsibility. In 2008, the Shenzhen Stock Exchange and the Shanghai Stock Exchange both required listed companies to disclose relevant social responsibility reports in accordance with the provisions of the Social Responsibility Guidelines; in 2016, the State-owned Assets Supervision and Administration Commission of the State Council issued the “Guiding Opinions on Better Performing Social Responsibility of State-owned Enterprises”; in the same year, Shanghai held a forum on social responsibility for foreign-funded enterprises for the first time, which is of great significance to the construction of social responsibility in related industries in China. Vol 8, No 2; 2018 the higher the company’s financial performance
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