Measuring Performance of Chinese Corporate Social Responsibility by Information Management and Modeling for Investment Analysis

摘要

In this paper, through the prisms of information management and finance, we study corporate social responsibility (CSR) in China. The timing is good, as manifested by numerous unsatisfactory fulfillment of CSR in China such as the poisoned formula scandal and other additive dishonesty and equally shocking disbehavior on Nasdaq and collapse of Wall Street. Resorting to some established industry practices, we measure CSR and far from over, we point out the imminent need to push the envelope through information management by setting up corresponding databases and market indices. Furthermore, based oh the measure, we construct portfolio selection models to incorporate CSR and provide concrete investment guidance for investors caring about CSR, which is original and thus can be our contribution. Initial empirical tests verifies the model effectiveness. More intesting and fundamental questions in finance are being kindled and of course, systematic empirical tests are being counted. The research can be an example of interdisciplinary approach, by information management and finance to be applied to an important social issue. Moreover, our measure and modeling is not country-specific and therefore can be utilized world-wide. A hew avenue of researching CSR is being opened and new results are being expected.