Research On Motivations And Effects Of Corporate Philanthropy

Corporate charitable giving,which is the core issue of studies in corporate social re-sponsibility,draws widely concerned in theory and practice.Therefore,the researches on the motivations and economic effects of corporate charitable giving is a hot topic in academic circles.Domestic and foreign literatures concentrate on analyzing the char-acteristics of charitable giving under a variety of unique situation.Currently,western scholars have made a great achievement in the research of corporate charitable giv-ing based on the market background of European and American countries.While in China,the research background of related literatures is still relatively single,which mainly focuses on the perspectives of major earthquake disasters and so on.In this case,domestic studies have been limited to pioneer research ideas,which makes it im-possible to make full use of a variety of Chinese market environment to understand the characteristics,motivation and economic consequences of charitable giving of Chinese enterprises during the period of economic transition.Also,it is adverse for investors to make effective judgments on the information of corporate philanthropy in complex market environment.To avoid the disadvantages in the single research background,this study considers to make more use of the unique situations of China as the research backgrounds to explore the driving factors behind corporate charitable giving in China.This article focuses on the typhoon disaster,Chinese family firms'succession between generations,and Chinese traditional culture as three kinds of unique Chinese research settings to study the corporate charitable giving.Firstly,the strong regional characteristics and frequency of typhoon disaster make it easy to compare the differences of enterprise charity behavior between disaster ar-eas and other areas,and study the non-altruistic motives of charitable donations after disaster from the perspective of the long-term interaction among local government,the market and local enterprises.This paper uses listed companies in Shanghai and Shenzhen from 2008 to 2015 as research samples,combining with the typhoon dam-age index calculated by wind field model,to study the influence of typhoon disaster to charitable donation of local listed companies.The main results show that in coastal cities,the greater typhoon damage is,the more local enterprises donate.Further moti-vation teste show that on one hand during typhoon with more media propaganda,in the competitive industry,companies with products directly contacted with consumers and industry leader firms,the reputation motivation in corporate donations is more intense.On the other hand,when typhoon disasters occur,the charitable giving has more polit-ical motivation,which is different from the research conclusions with the background of earthquake.This study shows that in the region with greater financial pressure the phenomenon that companies' donation affected by the typhoon is more apparent.And comparing with the private enterprises,local state-owned enterprises are more likely to increase donation because of the typhoon disaster under the pressure of government ap-portion.Finally,this paper also finds that the post disaster charitable donation can bring significant economic consequences to the enterprises,which verifies the non-altruistic motives of corporate donations.This paper provides practical solutions for stimulating the initiative of corporate social responsibility.Then,successful succession is the key point for family firms to realize sustainable development.But the difficulty of succession lies in fact that the special assets the firms heavily relying on founders are uneasy to be transferred to the second generation of the family.Basing on data of Chinese A-share listed firms from 2004 to 2013,we study the characteristics of donation during the period of succession and the internal relations be-tween them from the viewpoint of special assets transmission.The results show that,the firms with the successor coming from the second generation of the family are more de-voted to donation.And the level of donation rises significantly in the next year the new CEO taking office,while such phenomenon is unapparent when the new CEO is profes-sional manager or the first generation family member.And this corporate philanthropy can be affected by the firms' political connection,industrial features and the reputation of the firm.But there is no significant links between this phenomenon with the CEO's unscheduled departure and the education level of his successor.Further research find that the donation after succession results in good economic consequences for family firms,which indeed contributes to the smoothly succession of second generation.This study indicate that succession model "A son inherits his father",which is the real sense of the succession mode,motivates family firms to realize the effective transmis-sion of special assets through donation.This paper demonstrates the significance of donation in the process of succession from a new perspectives,which contributes to the research of succession and charitable donation in family business.Finally,as the core of traditional culture and the mainstream ethic consciousness of Chinese society,Confucianism influences the decision-making and behavior of to-day's enterprises.From the perspective of traditional culture,this research adopts the data of China's Shanghai and Shenzhen listed companies from 2008 to 2015 to explore the philanthropic performance of Chinese enterprises under the influence of Confucian culture.The main results show that the enterprises in the area with higher level of Confucian culture have more enthusiasm for charitable giving.This conclusion is still true in the robustness test.Further research also found that the influence of Confu-cian culture on corporate philanthropy is more obvious in non-state-owned enterprises.Moreover,the impact of foreign culture can weaken the influence of Confucian culture,and the two cultures show an alternative relationship.In addition,in the enterprise that chairman has no overseas experience or her childhood is before the cultural revolution,the Confucian culture plays a more significant role in promoting corporate philanthropy.However,the CEO's personal characteristics show no significant marginal influence on the effects of Confucian culture to corporate charitable giving.This research enriches the research field of corporate philanthropy.And it also provides a feasible scheme to motivate enterprises' initiative to fulfill social responsibility.