An Study On The Relation Between Charitable Donation And Corporate Performancee Of Private Enterprises

Charitable Giving has always been the traditional virtues of the Chinese, the charitable donation can be divided into three parts: the donation from individuals businesses and non-profit organizations. The individual donations have pure motivation but just a small amount. The amount of non-profit organizations is bigger but the nature of non-profit organizations is fulfilling social responsibility, so we should be concerned about the fate of their donated money, efficiency and transparency. As a profitable organization, enterprises not only occupy an important position in the social donations but also acting as an important driving force to promote the development of social philanthropy. From the surface, enterprise’s goal is get profit, it’s contrary to making the donation. However, is the fact really? So, it is important to figure out the motivation of donation and factors of donation etc.Private enterprise is a major part of our country’s economy, acting as an increasingly important role in corporate donations. In recent years, private enterprises not only in the number of enterprises but also in the amount and size of the donation have become more and more important. Charitable donation of private enterprises has become an integral part of corporate donations. Donation of private enterprises is unlike state-owned enterprise with a donation as heavy political overtones. So, the discussion about the donation of private enterprises has become more and more important.This paper is divided into five sections. The first section presents the background and significance of the research, the ideas and methods of research, innovation and contribution to the study. The second part sorts out the following three aspects by reviewing many domestic and foreign literatures: the motivation of charitable donation, influencing factors and the current views on the relationship between charitable giving and corporate performance. The main motivation of charitable donations can be divided into three categories: self-serving motives, altruistic motivation, strategic motivation. The factors of charitable donations can be studied form the following three aspects: the management features, enterprise features and corporate environmental. Nowadays, there are three main perspectives on charitable and corporate performance: positive correlation, negative correlation and irrelevant. The third part describes the conception of charitable, corporate performance and private enterprise briefly, and describes the main theoretical basis of charitable donations and corporate performance and analysis the performance of the charitable donations and corporate relations. In the fourth part, business relationship between charitable giving and corporate performance was studied by collecting Shanghai A-share listed companies in the private business-related data from 2008 to 2012, and using empirical analysis to analysis the results. Results of this study show that:(1) the charitable donation of private enterprises helps improve business performance;(2) the industry of private enterprises impact the result of charitable donations impact on financial performance. In addition, this paper has also demonstrated the relation between the size of corporate and donation, the degree of ownership concentration and donation, corporate debt and donation. The relation between size of corporate and donation is positive, the relation between the degree of ownership concentration and donation is positive but the relation between corporate debt and donation is negative. Finally, the paper suggest two relevant policy recommendations from the own and the government after getting the conclusion: on the on hand, this conclusion helps corporate do more charitable donations positively, pulling the fulfilling of social responsibility and creating a harmonious society; on the other hand, the suggestions on the government and relevant department helps improving corporate donations environment, promoting long-term development of China’s philanthropy.The main contribution of this paper is :(1) studying the relation between charitable donation of private enterprise and corporate performance by empirical analysis and normative study and get the conclusion finally;(2) this paper made private enterprises as the target, this is differ from other previous analyzes about charitable donation and corporate performance, the conclusion of this paper helps promoting private enterprise proactive charitable donations;(3) in the paper, the date time span is five years, this made this paper be more persuasive.