How Corporate Social Responsibility Affects the Return on Total Assets-An Empirical Study Based on A-share Listed Companies
DOI:
https://doi.org/10.54097/tn2m8x60Keywords:
Social Responsibility, Return on Total Assets, Panel Regression.Abstract
This paper conducts an empirical study on data from 1,242 listed companies in China's A-share market from 2012 to 2020 to explore the impact of corporate social responsibility (CSR) on return on assets (ROA). The findings reveal that CSR has a significant positive effect on ROA, indicating that corporate social responsibility can significantly improve a company's asset utilization efficiency and profitability. Panel regression analysis shows that CSR has a positive impact on ROA; heterogeneity results indicate that the effect of CSR levels on ROA varies significantly across different regions. Combining stakeholder theory, shareholder theory, and reputation theory, this paper constructs a regression model incorporating control variables such as firm size, debt-to-asset ratio, and net profit margin to reveal the mechanism by which CSR affects ROA. These research results not only provide theoretical support for optimizing resource allocation and improving financial performance but also offer empirical evidence for policymakers to refine regulations related to corporate social responsibility.
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