| dc.description.abstract | This study explores the relationship between corporate governance, social engagement and corporate value. Social engagement is one of the main projects of corporate social responsibility activities such as charity event, education for underprivileged groups and cultural activities promotion. This sample of research is from the communication network industry and the financial and insurance industry. We first explore the relationship between corporate governance and corporate value, and then discuss the potential moderating role of social engagement between the relationship between corporate governance and corporate value.
In the communications network industry samples, corporate governance evaluation, foreign shareholding ratio, and independent director ratio all have a positive relationship with corporate value, while the directors and supervisors shareholding ratio has a negative relationship with corporate value. Furthermore, social engagement can positively enhance the relationship between corporate governance evaluation and Tobin’s Q, and the relationship between independent director ratio and Tobin’s Q as well as price-to-book ratio.
In the financial industry samples, all corporate governance variables positively correlated with corporate value. Social engagement positively enhance the relationship between corporate governance evaluation and EPS as well as price-to-book ratio, and the relationship between foreign shareholding ratio and three firm value variables. But social engagement weaken the relationship between directors and supervisors shareholding ratio and EPS as well as price-to-book ratio, and the relationship between independent director ratio and three firm value variables.
Through this research, readers will recognize the importance of social engagement in corporate social responsibility, and encourage companies to focus more on social engagement in the future and then prosper with society. | en_US |