An Empirical Research On Relationship Between Listed Companies Philanthropy And Financial Performance

Whether the company should be engaged in the activities of corporate philanthropy is controversial. Some scholars believe that the company’s core property is the profit, creating profits is the only responsibility of the corporate. There is nothing to do between the corporate philanthropy and the production of enterprise. And other scholars believe that although the company does not get tangible value, it still could create a lot of intangible strategic assets which promote business environment of the company.Corporate philanthropy has become a common phenomenon in Western countries, corporate philanthropy have turn into strategic philanthropy from the random philanthropy. The market economy of China is still not ripe, there is not the guidelines of standardized system, and the decision-making process is almost casual, leading to that the behavior of corporate philanthropy is not helpful for the business activities of enterprises.The study of corporate philanthropy behavior has been become increasingly important to the community, and is there helpful for the corporate philanthropy to make positive impact on the daily operating? Can consumers recognize the corporate philanthropy? The past decade, especially after the2008Wenchuan earthquake, what is the new trend of Chinese corporate philanthropy behavior? By the empirical study of the relation between Chinese listed companies philanthropy and company financial data, we hope to answer this three questions. In the current period, the corporate competitiveness in China is still weak, and the exploration of the relationship between corporate philanthropy behavior and corporate financial performance, has important practical significance to encourage enterprises continuing to fulfill their social responsibility.Through analyzing, we draw the following conclusions:First, the company’s philanthropy behavior will be influenced by corporate financial performance, especially by corporate profitability and corporate debt levels;Second, the society pay more attention to the amount of the spent on corporate donations than the relative donation efforts of the enterprise;Persistent charitable donations of the enterprise will have a positive impact on corporate financial performance, and also affect the business performance of the coming period.The revelation of this paper studies:First, the corporate philanthropy could get positive feedback from corporate stakeholders, and promote the economic efficiency of the company.Second, companies should take corporate philanthropy into an important part of the strategy of enterprise.Third, thought the establishment of an objective information transmission channels, the charitable information can be passed to the face of the public in a timely manner, which could make the corporate philanthropy become the common requirements for social and the corporate.Fourth, the support should be given to the corporate philanthropy by the state sector, to improve the business environment of the company, and it is useful to establish appropriate donor monitoring systems which can prevent the emergence of the phenomenon of "fraud donations ".The outlook of this article:First, the differences about enterprise features will affect the relationship between the corporate philanthropy and financial performance. Such as company size, industry, etc.Second, it is different for the corporate philanthropy between the sudden disaster and the day-to-day acts philanthropy.Third, the unique culture of the Chinese nation will also affect the corporate philanthropy in China, we could study the impact made by the traditional culture for corporate philanthropy in the future.