Abstract

This study introduces many ideas of scholars, joins the gains of study, and puts forward the sustainable concept of enterprise's practice. It describes the interaction of social and financial performances, and the degree of influence that enterprise's performance has got from the behavior of managerial and institutional shareholding. Under controlling relevant operation parameters, with the multiple financial performance indicator (Tobinq, ROA, ROE, EPS), this study uses the research approach of three-stage simultaneous equations. To construct unbiased, consistent and validity model, we can receive comparatively reliable result and offer behavioral bases of relevant interested parties. In order to get more robust empirical result, this study processes empirical test with samples divided into three groups: 1) full samples, 2) TobinQ ≥ 1 samples, 3) TobinQ < 1 samples. This research suggests that the sample shows there is apparent influence of the behavior of the managerial and institutional shareholding on social performance; and the relation of the managerial shareholding and social performance is non-linear and concave to the x-axial. It has positive and significant influence on the relationship between social and financial performances; among multiple financial indicators, the sample of businesses with low corporate value is more significant. This point offers good investment message for investors. Furthermore, it facilitates the progress of social responsibility.

Key words: Corporate practice, economic practice, social practice, social responsibility, social performance, financial performance, sustainable operating, the stakeholder, social responsibility investment.