Corporate Philanthropy Behavior And Financial Performance

As time goes by, corporate has had profound effect on each country’s economy, politics, natural environment, social life, science and technology, education, culture etc. Corporate’s internal environment needs to make some adjustment in order to match the changes of external environment. Ecternal environment provides new opportunities and platform for corporate’s future development, also new challenges and requirements which corporate has to face.Society community expects corporate to shoulder more social responsibility and to view improving the welfare of the society as an obligation to bear. In the1970s,"Corporate social responsibility movement" activity advocates corporate should combines economic responsibility and social responsibility together, calls for establishing positive and interactive relationship between corporate and society. Chinese scholars for the corporate philanthropy research is relatively late, but we also seen a lot of good research and development momentum.On the basis of the existing research results, this paper defines the corporate social responsibility, corporate philanthropy, contingency theory, stakeholder theory, and proposes three research hypothesis:" hypothesis one:corporate donation and corporate financial performance has a positive correlation "," hypothesis two:the higher the level of the development of the region of the corporate, the weaker the positive correlation-ship between corporate donation and corporate financial performance " and " hypothesis three:the higher the advertising density of the corporate, the stronger the positive correlationship between corporate donation and corporate financial performance ". This paper uses contingency theory and stakerholder theory to make throretical explanation. Using the data of A-shares listed corporate donated amount from2005to2010, and extracting relative corporate financial performance data from Wind database and CCER database, this paper uses empirical analysis way to test former reaearch hypothesis. Through data analysis, the conclusiones are verified. The conclusions of this paper can provide guidance to corporate philanthropy donation decision, and supply empirical basis for the future corporate philanthropy research.