Using Tobinʹs Q ratio to testing the stakeholder theory applied to the corporate social performance

Corporate social responsibility (CSR) is emerging as an important issue in global developments. Given their important role in the global supply chains, Taiwanese enterprises must keep up with the trend and stay connected with the world. Companies that want to grow up, need a socially responsible behaviour and some explicitly proposed tougher rules on disclosure and reporting. This paper brings up a brand new concept, which used Tobinʹs Q ratio to test the CSP metrics and elaborates the relationships between Tobinʹs Q and the corporate social performance in the perspective of stakeholder theory. The purpose of this paper is to test the stakeholder theory to see if it as an influence on the ratio of Tobinʹs Q, and then interpret it with the hypotheses of the corporate social performances metrics. The research suggested positive correlations between the returns on equity and Tobinʹs Q, as well as donations, environmental expenses and the other corporate social performances metrics. Thus, this paper helped the managers to gain an understanding on the current status and future development of CSR policies in Taiwan.