Study On The Relationship Between The Private Enterprises Charitable Donation Behavior And Enterprise Value

In recent years, a large number of private enterprises in China pursues in charitable donating, and they are playing a more positive role in easing social conflicts, adjusting the gap between the rich and the poor, and promoting social equity and justice. In2009, our country privately operated enterprises have giving a number about5.427billion RMB, accounting’ for more than enterprise donate41.35%of the total13.127billion yuan, more than the total amount of the national-owned enterprises and the foreign enterprises, so we can see, the private enterprises have been becoming a big power of charitable donation. And our society paying more attention on this phenomenon.This paper takes the private enterprises as the sample, the writer had already research many papers which about the enterprise donation and enterprise value further defined the theme of this paper, namely whether the charity behavior of much of China’s private enterprises really increase the enterprise value. The research purpose is expected to make a solution to this problem, and further proved the enterprise donation behavior and enterprise value relations mechanism, so as to Chinese private enterprise managers to make right decisions which can make a higher value to provide certain theoretical guidance.But the writer found that there are two different viewpoints and conclusions on charitable donation studies, so make the relationship between charitable donations and enterprise value of the lack of a unified definition. Some scholars believe that charitable donations and enterprise value is positive relationship, charitable donation will improve the enterprise’s value directly or indirectly; other scholars think that charity donation behavior does not belong to the enterprise and obligation should be concerned about, charitable donation will bring enterprise financial losses, so that they think that the enterprises which chasing the maximize value should not do any charitable donations.The former differences on charitable donation studies is possible because each scholar selected different research objects and different research methods, but another important reason is that many scholars did not considered the enterprise stakeholders may impact on the relationship between the charitable donation and enterprise value. This author think that we must take into account the stakeholder’s influence.Therefore, this paper based on previous study methods and introducing stakeholders satisfaction degree as the moderator, at the same time,selecting some China’s private enterprises as the research object, to verify the relationship between charitable donation behavior and enterprise value, in the influence of stakeholder satisfaction.This paper has selected the2009-2010for charitable giving’s119private manufacturing companies as research samples, the charitable donation behavior as explained variable, the enterprise value as explained variable, the enterprise’ growth opportunity, risk, age and size as control variables to the regression analysis. The final regression analysis showed the relationship between charitable donation and enterprise value had positively correlated, but not significantly. When introduced stakeholders satisfaction degree as variable, charitable donation behavior and enterprise value had a significantly positive correlation, The moderating effect of stakeholders satisfaction degree is verified.According to the regression results, the author got a deduction on the choice of enterprise charitable donation rationally or irrationally,and hope the deduction can be meaningful to enterprise managers’charitable donate decicion. In order to study the reliability, this paper also changed the measure of partial robustness test, the results show that changed some measures couldn’t make the original research have substantial changes,the original research is stable and reliable.In this paper, the research value is mainly manifested in the following respects:1、 Found the private enterprises charitable donation behavior and enterprise value does not exist a direct causal relationship.2、 Found the mechanism of the private enterprises charitable donation behavior affecte the enterprise value. When the stockholders, creditors, employees, suppliers have highly satisfaction, the charitable donation behavior can improved enterprise value, when they are in low satisfaction, the promoting enterprise value are low. 3、 Found the general rule of charitable donation behavior. Which have a certain guiding significance when a right charity decision making.This paper’s study also has some problems and defects. Firstly, on the sample and data selection, because of some limited conditions, this paper only considers the enterprises which in2009-2010had a lasted charitable acts as the research sample, the sample time interval is not long, this means we can’t do long term observation. Moreover, this paper takes out many companies which have no charity donation behavior in resent years to make sure the effection. Thus, the contrast effect of charitable donation behavior with or without the value effect is difficult to be see, the paper only focus on the changes in the value of effect of each stakeholder satisfaction under the regulation of corporate charitable donation amount. Secondly, there are many influences in this question, due to the writer’s limited time and weak energy,these paper may have some forget things. Finally, although this paper did many rational or irrational inference thinking, but only roughly the charitable donation behavior in what circumstances is irrational or not, and the writer could’t critical point out what is rational,what is irrational. so this paper couldn’t show the exact number and common measurement methods. These shortcomings may needs further study in the future.