The emerge of corporate responsibility, making corporate no longer just pursue the shareholders' wealth maximization but also take the responsibility of stakeholders’ losses, and to execute the corporate responsibility result by using the corporate responsibility reporting to show to the people and to be examined. The purpose of the study is to confer the relationship between corporate responsibility reporting, cost of equity capital and financial performance.
Based on Taiwan’s data, after exposing corporate responsibility reporting, the cost of equity capital descends gradually, showing the investors might bring the corporate responsibility into consideration for investment. However, exposing corporate responsibility reporting might also raise reputation and whole appearance which bring more financial performance.
