Xiaozhi Fang
School of Management, Hefei University of Technology, Hefei, 230009, People`s Republic of China
Weidong Zhu
School of Management, Hefei University of Technology, Hefei, 230009, People`s Republic of China
ABSTRACT
The relevance between corporate social responsibility and financial performance has become a heated debate at home and abroad over the past 20 years. Most scholars study the relationship between them from the perspective of shareholders and by setting the profit index or market return index. This study explores the relationship between them from the perspective of stakeholders,value added is just a very important tool to evaluate corporate financial performance. The purpose of the study is to uncover whether enterprise undertaking corporate social responsibility has an impact on improving value added. Some studies result confirmed that the index of value added had an ability to explain the market risks which is more powerful than the indexes of profit and market. Taking the data of China's listed companies in 2005-2011, the author verifies the relationship between corporate social responsibility and value added by using the balanced panel data regression model of fixed effect. The results show that not only in short-run but also in long-run, enterprises' fulfilling their social responsibility is positive to added value.
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How to cite this article
Xiaozhi Fang and Weidong Zhu, 2013. Empirical Research of the Relationship Between Corporate Social Responsibility
and Add Value: Based on Chinas Listed Company Panel Data of 2005-2011. Journal of Applied Sciences, 13: 3952-3960.
DOI: 10.3923/jas.2013.3952.3960
URL: https://scialert.net/abstract/?doi=jas.2013.3952.3960
DOI: 10.3923/jas.2013.3952.3960
URL: https://scialert.net/abstract/?doi=jas.2013.3952.3960
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