Study On The Relationship Of Enterprise Charity Donation And Firm Value

In recent years, with the rapid development of our economy, our country philanthropy has been the rapid development, the charitable donation behavior has increasingly become a common phenomenon. Has highlighted the bottlenecks in the traditional factors of production to enhance the role of the competitiveness of enterprises, corporate charitable donations into the business management strategy to gain competitive advantage, improve business performance and enhance corporate value has gradually become the inevitable choice.This paper, from the perspective of EVA theory, analyzes and explains the role of corporate charitable donations to enterprise value. Sample donated by obtaining corporate disclosure from2008to2010. synthesizes for three years continuous donation expenses206valid samples, and this article empirical analyzes the influence of enterprise charitable donations on corporate performance and value. The results show:the continuity charitable donations and business performance has not necessarily a positive relationship, only current donations effect significantly corporate current performance. Corporate charitable donations with lagging two periods, for the current, can not upgrade the operating results of the business. Charitable donations have the impact weakly on the current value of the business, and lagging two period charitable donations can enhance enterprise value. These conclusion, for our enterprise, to do or not to do charitable giving and social responsibility, provides a theoretical exploration and management decision-making reference. This article includes theoretical analysis, literature review and empirical research three main parts, consists of five chapters:Chapter1briefly introduces the issues, implications, contents and methodologies, as well as the innovation of this paper. Chapter2elaborated the theoretical basis. Chapter3reviewed the literature of issues, summarized the research results, and pointed out the problems, and then provide direction for the further study of this article. Chapter4analyzes the present situation of China’s enterprises charitable donations, including factors affecting corporate charitable donations and problems that corporates face, provide the foundation for a clearer understanding of the development status of China’s corporate charitable donations. Chapter5, by establish economic model, use Excel、spss17.0empirical test the relationship between corporate charitable donations and corporate Performance, corporate value, and then analyzing the results, and finally clear corporate charitable donations on corporate performance and value, which provide a theoretical reference for the enterprise charitable donations. Chapter6is the conclusions and the lack of this paper.