Research On The Relationship Between Corporate Persistent Charitable Donations And Corporte Value

With the emergence and development of the concept of corporate social responsibility, the public voice of the corporate responsibility to fulfill increasingly high.The public believe that companies should not only consider their own interests, seeking to maximize profits while ignoring the interests of stakeholders, but should take into account the interests of others, to bear social responsibility as a "social citizenship ".Charitable donations as a way of corporate social responsibility, is easy to observe and measure, and therefore attracts more and more public attention.Scholars conducting research on charitable donations mainly focus on theoretical and empirical aspects. On theoretical field, focus is mainly concentrated in charitable giving motivation, factors and effects.On empirical side, most studies are focuses on the economic consequences of corporate charitable donations, namely the impact on business performance/ enterprise value,but there is not a unified opinion. In addition, the existing empirical researches on the relationship between charitable donations and corporate value mainly explore the question if the two has any relation, there is few research to study the impact of persistent charitable donations on enterprise value. Based on this, this paper uses the listed companies in Shanghai and Shenzhen which have charitable donations behavior every year during 2009-2013 as the study sample to explore the impact of persistent charitable donations on business value. This study examines the relationship between corporate donations and corporate value from the perspective of sustainability issue which can complement and enrich the research in related fields; on the other hand this paper can help companies understand the behavior of corporate charitable donations better, and to develop appropriate donation strategy according to their strength. So that this study has important theoretical and practical significance.This paper uses both normative and empirical research method to explore the issue discussed above.Through reviewing and summarizing the related researches, the author discovers that the motivation of corporate charitable donations include economic rational egoism concept of charity, altruism charitable view of corporate citizenship and strategic win-win concept of charity and charitable outlook passive follower. Otherwise, strategic win-win concept of charity in recent years has been widely accepted and recognized that corporate charitable donations is not only beneficial to the community, but also conducive to their own, it is a way to achieve "business-Society" win-win. In addition, the role of corporate charitable donations has been the focus of attention of theorists. Scholars Zhong Hongwu concluded in 2007, the company’s charitable giving legitimacy protection, insurance and value added. Based on the above motives and roles, the paper proposes the hypothesis that persistent charitable donations effect enterprise value positively using social responsibility theory, stakeholder theory and the theory of enterprise strategic charitable donation as theoretical foundation.In empirical terms, the paper uses the listed companies in Shanghai and Shenzhen which have charitable donations behavior every year during 2009-2013 as the study sample. After screening,632 sample companies,3160 sample data are remained. The author using Stata 11 statistical software, building a model conduct cross-sectional data regression and panel data regression confirms the hypothesis that persistent charitable donations effect enterprise value positively. In order to make research results more reliability and robustness, we also carry out the enterprise value of the deal one term to resolve a lagged endogenous problems that may exist, the results also show that the value of continuing donations and corporate companies are related positively. In addition, the paper also use other variables to instead the dependent and independent variables to regress,the results still support article assumes, which once again examining the reliability and robustness of the results.This consequent tells us that companies should adopt a strategic view of the charitable donation and remind it as an integral part of corporate strategy, and donate reasonably and persistently, which will not only help the development and progress of society, but also help to enhance the value of their own,and it is a win-win double benefit behavior.