How Corporate Social Responsibility Influence Enterprise Value: The Mediating Effect of Trust

Abstract

The empirical results of the correlation between corporate social responsibility and firm value are diverse, which is originally due to the lack of deep research on their action mechanism. This paper thinks that corporate social performance can build stakeholders’ trust, analyzes that trust helps reduce the corporate transaction costs and puts forward that social responsibility affects enterprise value through the mediating effect of trust. Therefore, enterprises need to fulfill their social responsibility, so as to establish a trust relationship with different stakeholders, and ultimately enhance the value of the enterprise.