A Study on the Relation of Social Performance on Financial Performance in Media Listed Companies

This study analyzes the impacts of social responsibility performance on financial performance by using the Panel Data Model. The hypothesis is empirically examined based on the data of a sample of 13 media listed companies in Shanghai Stock Exchange and Shenzhen Stock Exchange from the year 2003 to 2010. Besides, the social performance of the companies is analyzed from the perspective of stakeholders, e.g. employees, consumers, creditors, suppliers and the government party. The financial performance is analyzed based on the accounting performance and market performance. The empirical results showed that social performance of Chinese media listed companies and accounting performance are significantly positive correlated, whereas the correlation between social performance and market financial performance is not that significant. Furthermore, company size has a significant effect on accounting performance but non-significant effect on market performance.