The Influence Of Senior Political Association On Corporate Philanthropy

In recent years, the private enterprise has been developing and expanding, has become the main power of the charity enterprise, and become the important manifestation of the enterprise take the social responsibility.. Political connection refers to the private listed company executives, including the chairman of the board of directors or the general manager is ex or current government officials, deputy to the National People’s Congress, members of the CPPCC and that executives’ political connection as an important informal alternative system and of the private listed companies act of charity is an important influence. This paper mainly from the perspective of political motivation, to study the political relevance of the private listing Corporation executives how to affect the behavior of charitable donations.This paper from the resource dependence theory, agency cost theory, and system theory, the theory of analysis of the influence of political connection of private listed company charity donation, and carries on the real diagnosis analysis to 2009-2013 years China’s Shanghai and Shenzhen private listed companies as a sample. The study found that:(1) with the politically connected enterprise, the more active involvement of the enterprise with the political association, and the higher the donation level, compared with the non political related enterprise. (2) from the perspective of agency cost analysis, the higher agency costs of the company, such as the size of the board of directors is bigger, the shareholder’s ownership and management right separation degree of control is, of corporate philanthropy behavior have positive effect. (3) the level of the market will also have an impact on the charity of the enterprise.This paper reveals the influence mechanism of political association of corporate philanthropy, and this effect in different regions and the difference between different enterprises, to understand the effect of charitable donation factors have important significance, also for the current private enterprises in transformation period involved in charitable donations provide an explanation for the political.