A virtuous circle brought about by corporate social responsibility – A study of the dynamic relationship between social capital, social responsibility and corporate value

AbstractCorporate social responsibility plays an important role in promoting national harmony and high‐quality development. And social capital is the foundation of corporate survival and enhancing value is the goal of corporate survival. The interaction between social responsibility, social capital and corporate value and the degree of influence is an issue waiting to be studied. This paper takes listed companies from 2010 to 2020 as the research object, and empirically examines the dynamic interrelationship and degree of influence between the three on time series by constructing the PVAR model to include the three in the same analytical framework. The study shows that: (1) There is a virtuous circle mechanism of “social responsibility‐social capital‐corporate value”. (2) CSR and social responsibility are mutually causal, and social responsibility and corporate value are mutually causal, while social capital can only enhance corporate value in one direction. (3) Although the interaction between the three variables gradually decreases and tends to zero over time, it still has a strong lag, and the effect generated in the current period can lag at least 10 periods. The research results enrich the dynamic relationship between social capital, social responsibility and corporate value, and provide strategic references for corporate value enhancement.