An Empirical Study On Corporate Giving、Financial Performance And Social Effects

Corporate giving, a way of performing corporate social responsibility, attracted more concern and attention from enterprises, with the concept of corporate social responsibility being putted forward, and the concept of foreign-related charity being incomed. Especially in 2008, two natural disasters, the earthquake in Wenchuan and southern snowstorm, triggered a wave of charitable donations. Donations from corporate has evolved into the main force of charitable donations gradually, and private enterprises in charitable donations are also playing an increasingly important role. Meanwhile there also set off a wave of research on corporate charitable donations in academia. The literature on study of corporate charitable donations all focused on the factors affecting corporate giving and financial performance caused by corporate giving, but the conclusions are not uniform.This paper summarizes the current research,and hypothesize "the businesses with abundant cash flow are more likely to donate"; "the businesses with abundant cash flow will donate more"; "there is a positive correlation between corporate charitable donations and financial performance"; "compared with non-routine donations, the positive correlation between the daily donations and corporate financial performance is more significant" and “there is a positive correlation between corporate charitable donations and social effects”, based on strategic philanthropy theory, resource dependence theory, the stakeholder theory and reciprocal exchange theory. This paper take an empirical analysis of 275 private enterprises listed in Shanghai and Shenzhen from 2008 to 2013 based on above assumptions, and the dates come from the GTA database, CCER database and Baidu News Online. The empirical results show that, China’s private listed companies to donate or not and donations are not subject to cash flow, at present, and is blind. And there is a positive correlation between corporate charitable donations and financial performance, as well as social effects.The conclusions of this study can guide private enterprises to make decision about charitable donations, in theory, and provides empirical basis and direction for research on enterprise charitable donations.