Product Market Competition, Persistent Donation And Corporate Performance

With the arrival of increasing competitive market based economy in a era ofglobalization, traditional production factors impact on the competitiveness of thelisted company weakened,which pushs corporation to search for new developmentstrategy. Donation, as an important part of social responsibility, by no meansundergoes stakeholders’ concerns. An increasing number of multinationalcorporations take durative donation as a strategic investment, participating in China’scontinuous donation activities, setting up a good “corporate citizens” images. Inrecent years, A great number of domestic enterprises actively responded to disasterevents,in a mean of enthusiastic donation, however,disaster is nevertheless accidental,which is difficult to take a lasting market impact, only when we manage the donationin strategic height can the accidental donations into enterprise’s be sustainable, so asto strengthen the contact with various stakeholders, better enterprise’s reputation.According to the statistics from Chinese corporate social responsibility report (2009),the enterprise behaves quite differently in specific donation item, previous reportsstates out several reasons for the this difference, but few studies stand on the base ofindustry characteristics. In addition, the characteristics of different sectors of business,the validity of continuous donation behavior is still a questionable proposition.Therefore, the purpose of this paper is to study whether or not those coporationsfeatures with persistent donations seeking self-perfection through donation deed, iftrue, how to implement the persistent donation as well as the confirmation ofconvergency, then,searching for a breakthrough point for this kind of company.This paper firstly hackles the company donation’s impact on the on theirfinancial performance and several related corporate donation theories, secondly,defining concepts of persistent donations and financial performance, on thatfoundation, analyze the influence of the continuing donation on financial performancemechanism as well as product market competition mechanism, to propose hypothesis,to build the regression model, employing the2007—2011,China’s a-share main board listed company data for empirical testing. In Empirical research part, first of all,testing the descriptive statistics and correlations for each variables, then verifying thecontinuous donations of financial performance effect, industry competition byregression analysis degree.different companies hots endowment effect of financialperformance differences and donated to the companies in different industries.The results show that the donor can improve performance of listed companies,continuous donors are easier to improve performance of listed companies that thanoccasional ones. Competition in the industry promotes persistent donations. Persistentdonation acts significantly in fierce competition in the industry of the listedcompanies’ financial performances.