Influencing Factors Of The Charitable Contributions Of Listed Companies

There are three national wealth distribution process:first is dominated by the market, namely the " invisible hand," according to allocate resource elements, also known as the initial distribution, which focus on efficiency; second is led by the Government through taxation, expenditure, etc. Compared with the initial distribution, the second distribution is more emphasis on equity rather than efficiency; charity is the supplementary of the two ways above. The subject of charity distribution is businesses and individuals, their donate their wealth to NPO or individuals. The third distribution way concerns social liability instead of efficiency and fair.1, Background and purposeCharity gains its popularity in china in recent years as some Chinese get more and more rich. Charity, as the third form of distribution, is personal (business) voluntary donate their wealth to others or social organization, its core is voluntary and autonomy. Charity in China gains its attention after the2008Wenchuan earthquake, So2008is also known as China Charity " first year." Followed by the earthquake in Yushu earthquake and Ya’an, the majority of enterprises are also set off a wave of charitable giving. This article is based on this background, to find out the roots in the corporate motives behind charitable donations, what is the motivation that leads enterprises to make a charitable donation behavior.The purpose of this paper is as follows:(1) analyse and research how the political background affects the company’s charitable donations.This paper aims to study how the political background will affect the willing and scope of charitable donations. Under the background of China’s special economic society, the government has a number of key resources which enables the government to become a important one in the economy. Companies desire critical resources, so political context has became a key factor which is important for many companies desire political resources.(2) analyse and research how the corporate governance mechanisms affects the company’s charitable donations.Company executives are willing to donate the company’s assets in order to reap some personal gains. In China’s economic transition period, the system of checks and balances executives of listed companies will be more or less true, and because the difference between the control rights and cash flow rights in the hands of executives will hold motivate executives against the interests of the shareholders of matters to make, so the second purpose of this study is to find whether the relatively imperfect system of governance of the company, in order to reap some of the executives will be more willing to donate personal income and assets of the company.2, The main contents and viewsThere are six chapters in this paper:Chapter Ⅰ, Introduction. First, describes the current status of corporate donations, then leads to the importance of charitable giving, expand the question:"what factors are affecting the company’s charitable donation decision?" Secondly, make a brief overview of the research idea, trying to render this context clear,using standard research and empirical research that combines research methods, and which show that the use to research tool. Finally, this paper summarizes the expected contribution.Chapter Ⅱ Literature Review. Based on the motives behind donations, the paper summarizes the domestic and foreign scholars integrated corporate charitable donations perspectives drawn Institute motives, including strategic motives, political motives, altruistic motives, as well as corporate reputation theory, theory and self-interested behavior Community-brand strategy theory, etc.. Charitable donation in the corporate literature factors were partially influencing factors, this paper summarizes some research at home and abroad, scholars have found that various charitable donation affect the influencing factors have different views, there are qualitative and quantitative research, including quantitative research Lord.Chapter Ⅲ, theory analysis. This chapter is the key part of this paper. Based on a literature review, this paper trying to explain the motivation behind the donation from two aspects:resource dependence theory and agency cost theory, figure out how the enterprise resource dependency on the political and agent cost will affect the company’s donate willing and scope. Based on resource dependence theory, because relations firm performance and survival of some of the key factors that are not under the control of the enterprise itself, often some of the key factors that will be mastered by the government, especially in our current national special market economy conditions, therefore, companies often crucial in order to obtain the resources to seek some kind of political dependence. This is why many companies are willing to hire a lot of retired senior independent director or consultant to do the cause. In addition, based on the agency by agreement theory, the company’s operators control over the holding company will often go against the interests of the company owners. In this perspective, charitable donations, the company operator will order certain non-monetary personal interests at the expense of the interests of shareholders of the Company to make charitable donations behavior. If the corporate governance system is not perfect, it would undermine the management constraints, which management will make a donation based on self-interest behavior.Chapter IV, the study design. This section is designed to verify the theory analysis before. This paper presents two hypotheses. H1:Company executives are more likely to have associated political donations, donations greater intensity; H1.1:company executives are current or former government officials, deputies and CPPCC members of the company, are more inclined to donate, donation efforts greater. H2:agency costs will affect the listed company’s charitable donations will and strength; stronger the more dispersed ownership and control of the pyramid shareholding structure of the Company under H2.1, to donate, the greater the intensity; larger scale H2.2Board companies more inclined to donate, donations greater intensity; H2.3two jobs separate companies more inclined to donate, donations greater intensity; H2.4independent director proportion of larger companies more inclined to donate, donation efforts are also more large.Then shows a sample of the data sources and the case, and finally the design and selection of variables and the proposed model.Chapter V, empirical findings. This chapter is the last chapter of the hypotheses proposed validation process. First of all, variables descriptive statistics. Secondly, respectively, the correlation between variables were analyzed and based on multiple linear regression. Finally, in order to study the reliability of the model is still the last robustness have been tested.Chapter Ⅵ, the conclusions and contributions. This chapter is divided into two parts:The first part describes the conclusions of this study, as well as in accordance with the relevant conclusions drawn inspiration. The second part presents the main contribution of this paper.3, Contribution(1) Find out how the political background of the listed company’s senior executives influence companies charitable donation. Based on resource dependence theory, senior political background will affect the behavior of corporate charitable donations, senior management has a political background of the company, whether it is to obtain from the perspective of political resources to maintain political relevance, or are expected to meet stakeholders from perspective, are more willing to participate in charity and donations.(2) Find out the impact of corporate governance mechanisms to charitable donations of listed companies. Based on the principal-agent theory, due to the presence of the principal-agent problem, senior executives of listed companies to make decisions based solely on charitable donations is not the purpose of maximizing the purpose and interests of the company to maximize shareholder value, but it is possible to seek a some private income and charitable donations. The strong governance mechanisms, Managerial through charitable donations opportunity to seek private benefits is small.