A Study on Corporate Governance, Social Responsibility and Firm Value

This article constructs corporate social responsibility contribution index and tests the relationships among corporate governance, CSR and corporate value nexus. Employing the panel data of 1188 listed companies in Chinese A share market during 2007-2011 period, we find that the stronger CSR engagement choice is positively associated with governance characteristics, including executives' salaries, directors' ownership, state-owned shareholding ratio and tradable shareholding ratio, and the weaker CSR engagement choice is positively associated with CEO ownership and duality. In addition, our results show that stronger CSR engagement has negative affection for current firm value; but that over two years, stronger CSR engagement positively influences firm value in the long-run. Therefore, the fulfillment of sustainable corporate social responsibility has obvious improvement to firm value.