Impact Of Corporate Philanthropy To The A-share Listed Companies

Since China joined the World Trade Organization (WTO), with Chinese enterprises’ poor behaviors in aspect of social responsibility frequently in and out of China, corporate social responsibility is becoming the focus of academia, enterprises themselves, regulators and even investors. As one of the most ancient means of committing corporate social responsibility, corporate philanthropy has become one of the most popular topics. Especially after the 2008 earthquake, due to the impact of "Vanke Event" and Wang LaoJi, businesses will have to regard corporate philanthropy to the level of corporate strategy, and the level of corporate philanthropy from the point of the whole society has been greatly improved. And the standard of information disclosure of large state-owned enterprises and listed Company also greatly improved.In this context and on the basic of theories of corporate philanthropy and corporate social responsibility, this paper attempt to explore the rules of how corporate philanthropy affect listed companies in recent years, especially since 2006. The biggest innovation of this article is that there is no one-side conclusion on impacts of corporate philanthropy, but focusing on different situations in short-term effects and long-term effects.In the part of empirical research on short-term effects, this paper regard the stock price as the dependent variable, extracting data made up of 4139 sample points of all A-share listed companies corporate charitable donations from 2008 to 2012, calculating of CAR of comparable company group from 30 days to 160 days, found that corporate charitable donations and the a-share listed company’s share price has a short-term negative effect. And we do the robust-tests from three different dimensions, and the results remained significant.In the part of empirical research on long-term effects, the article chose the ROE next year as a representative indicator of business performance in the second year of operation. We select data made up of 4139 sample points of all A-share listed companies corporate charitable donations from 2008 to 2012, and set the total assets, financial leverage, annual effect and industrial effect as control variables, and run series of regression analysis. Finally we found ROE of a listed company in the following year and the previous year’s donation levels were significantly high positive correlation. And we do the robust-tests from four different angles, then the results remained significant.