| In recent years, the enterprises philanthropy has become a hot issue of the academic research, but the academics don’t have a unanimous conclusion on whether the philanthropy have an influence on the enterprise management and especially on enterprise’s financial performance. The supporters insist that philanthropy can increase the reputation of enterprise, establish the moral capital, and can improve the relationships between stakeholders. All of above factors can enhance the financial performance of the corporate indirectly. The opponents think differently. In their opinions, the primary task of enterprise is to create values, to bring more benefits for its shareholders; however, the philanthropy will make the company loss the money. Does the corporate philanthropy have a positive influence on its financial performance? In China, different regions have an unbalanced development in their regimes, economic and political environment. Under different market processing, the question is if philanthropy has a different effect on enterprise financial performance? Based on the research status, this paper chooses the methods which combines normative research with empirical research to demonstrate the influence the enterprise philanthropy have on its financial performance. Then it divided the whole samples into two groups, the high market processing and low market processing, comparing the different influences of philanthropy have on enterprise financial performance in the different market processing.The main contents of this paper are divided in five parts, show as follows:the first part is the introduction, discusses about the research background and research significance, the literature summary, at the same time, the paper elaborates the research thinking and methods. The second part, first of all, it defines some related definition, then it describes the correlation theory of philanthropy and the financial performance, and it also gives a brief analysis to them. The third part describes the background of the system and the present situation of corporate philanthropy, and in addition,it analyzes the mechanisms of action about that the philanthropy affect the financial performance and that different market processing affect the relation of philanthropy and financial performance. The fourth part is a part of experimental test, firstly select A-share manufacturing industry in Shanghai Stock Exchange from 2010 to 2013 as samples, then set a specific variable, finally build a regression model, through the model to check and to have a stability test. The fifth part, it draws a conclusion according to the study and put forward suggestions.The research results indicate that, the enterprise engaged in the philanthropy, and the amount of philanthropy it gives has a significantly positive influence on its financial performance (ROA and ROE). In other words, when the enterprise engaged in philanthropy, or with the increasing scale of enterprise philanthropy, the financial performance of the enterprise will improved significantly. However, further studies have found that the promotion effect of enterprise philanthropy only exists in the regional enterprises of high market processing, but in the regional enterprises of low market processing, the promotion effect is not obvious. As can be see, the difference of China’s market processing between provincial is an important factor to influence if the enterprise philanthropy behavior can be translated into the enterprise economic benefit effectively. |
