Examining the Effect of CSR on Financial Performance in China: Agency Cost as Mediator

Purpose: The aim of this study is to examinethe relationship between CSR and corporate financial performance, mainly discussing the ROA, also use agency cost as mediating variable, using a sample listed companies in China conduct provide relevant suggestions for subsequent development company Theoretical framework: As external social responsibility, government, media, public governance should strengthen reporting monitoring responsibility establish multi-governance system. Design/methodology/approach: Theresearcher used quantitative analysis explore independent variable dependent reflect how affect turn, improve performance firms China. Findings: results showed that ccompanies be restrained from fulfilling way giving back society without compensation, not win market through speculation or malicious collusion, otherwise it will hinder their long-term become double-edged sword Research, Practical & Social implications: based on heterogeneity finds internal conducive enhancing employee motivation, maintaining interests shareholders stakeholders such suppliers customers, thus providing favourable environment green technology innovation. In contrast, an excessive level fulfilment can lead making maintenance relations priority viewing tool gain access market, so may neglect development. Originality/value: value highlighted economic agents, enterprises actively fulfil relationships with employees, shareholders, customers.