Relationship between Corporate Social Responsibility Performance and Corporate Financial Performance-- Listed Companies in China's Power Industry

  • Yazhou Wang School of Management, Shinawatra University, Thailand
  • Angkana Phiewla-or School of Management, Shinawatra University, Thailand
  • Piengpatcharee Cheapeng School of Management, Shinawatra University, Thailand
  • Nuengruetai Champathin School of Management, Shinawatra University, Thailand
  • Sophita Boonrueang School of Management, Shinawatra University, Thailand
  • Thitima Pongkumsing School of Management, Shinawatra University, Thailand
Keywords: Corporate Social Responsibility Performance, Corporate Financial Performance


          The purpose of this study is to use quantitative analysis to better understand the degree of relevance of social responsibility performance and financial performance of state-controlled listed companies.

          The sample consisted of selecting energy companies listed on the Shanghai and Shenzhen stock exchanges as a population of 50 state-run listed companies. In 2008, the State Property Regulatory Commission issued recommendations regarding central corporate social responsibility operations. In 2011, the State Assets Regulatory Commission issued the outline for the implementation of the plan. The 12th Five Year Plan for Central Coordination Development in 2012, the State Asset Regulatory Commission established a regulatory committee.

          The instruments and research methodology were to begin with corporate social responsibility theory, stakeholder theory and contract theory, and selects energy companies listed on the Shanghai and Shenzhen stock exchanges as a population of 50 state-run listed companies. Theoretical analysis, research hypothesis and research equation modeling analysis of results, regression analysis, and audits show that the current corporate social responsibility is positively correlated with the current financial performance.

          The research results were found that the fulfillment of corporate social responsibility not only helps the company to build a good image, increase the reputation of the company, but also improve the financial efficiency of the organization. TER indicates that the state the stability of the responsibilities of the listed power companies to the government is better. PER, some companies perform poorly in environmental responsibilities in 2018; the standard deviation is 0.0698535, which indicates that state-controlled listed power company’s performance of environmental responsibility is very stable. DER, indicating that the overall performance is very stable. OCR, the average value is 78.137012, which indicates that the overall operating cost of the power industry is relatively high; the standard deviation is 15.52566931, which also indicates that different power companies perform Customer responsibilities vary widely. EPS, indicates that the returns to shareholders from different companies are significantly different; the standard deviation the value is small, which indicates that the company's performance of social responsibility to shareholders is stable. The performance of social responsibility of state-controlled power companies have a positive impact on corporate financial performance.


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