The Impact Of Corporate Charitable Donation On Firm Performance

In Western classical economic theory framework of economic organization, its main goal is to maximize profits for shareholders. In the 1950s, scholars of the company discussed about social responsibility. There was some discussion, but still there is a big debate on the definition of corporate social responsibility. With modern industrial progress, people gradually found that: corporate social responsibility to play a leading role in promoting industrial development and social progress of material civilization, its influence is increasingly covering political, economic, and even all aspects of life; but with modern society of commodity production, environmental pollution, occupational safety, labor disputes and other violations of consumer rights and interests of a growing problem. More and more people hope, as the main body of the Committee, or "citizen" of the enterprise can take advantage of its technical and financial resources to help solve social problems.Civic responsibility philosophy of continuous progress and development, more and more companies want to fulfill their social responsibilities and participate donations. Business as rational economic man in making charitable decisions should be combined with the demands and interests of the long-term development of the subject companies to achieve win-win objective social and business performance. Therefore, enterprises in the investment public activities generally consider factors charitable donations, to achieve the goals of the different motives, and ultimately improve business performance and meet public expectations. In this paper,2012-2014 China’s Shanghai A-share listed and have three years of continuous donation of a sample of companies, focuses on the impact on the business performance of the charitable donation, from the reputation of the transmission path and resource-dependent path to explore charitable donations were generated on firm performance positive effects. Empirical studies show that charitable donations can enhance the corporate image and reputation, the effect of advertising and marketing play, energy and government departments to achieve resource reciprocity, to maintain the relationship between business and government assets, reduce the uncertainty of the business environment, and ultimately improve the financial and market performance. Further empirical studies show a positive impact on charitable donations of state-owned enterprise performance is more significant, and positive impact on private charitable donations for the production of end products, business performance more remarkable. From the point of view of the empirical study of charitable donations and long-term development strategy combining both create a good social atmosphere of charity, but also can improve business performance, so companies increasingly want to fulfill their social responsibilities and participate donations.