A Study On The Relationship Between Charitable Giving And Financial Performance Of Enterprise

In recent years, with the occurrence of natural disasters, financial fraud, food safety, the deepening of reform and the reinforcement of harmonious values, all make the government and enterprises attach much more great importance to corporate social responsibility. Charitable donation is one of the important forms of corporate social responsibility. When academia and the public measure whether enterprises undertake the corporate social responsibility, charitable donation is regarded as the first and the most common measure to measure the contributions of enterprise to the social public welfare. Especially, after the Wenchuan Earthquake, the public is more like to use the degree of charitable donation in the natural disasters to measure the stand or fall of undertaking of corporate social responsibility, and those have a direct impact on donated the establishment of the enterprise image. Therefore, based on corporate charitable donation, the research of enterprise philanthropy is quite an urgent theoretical and practical significance.As the backbone of the financial industry and the mainstay of the banking industry in our country, listed banks has special economic status in the capital market in China. In addition, based on the special external macro environment of politics, economy and culture, this paper carry out the theoretical exploration and research about the relationship between the charity and the financial performance of banks in our country. On the one hand, charitable giving can make the bank have a more profound understanding about the corporate social responsibility, and strengthen its social responsibility. On the other hand, with the special status in the capital market, commercial Banks could have an indirect function to other industries in our country for the implementation of the corporate social responsibility through the formulation of its policy and reset of product. For example, the enterprises which have the behavior to protect environment or donate the person in demand will get some preferential policies.In conclusion, this text Selects16listed Banks in China from2008to2013as the samples, chooses non-performing loans, charitable donation of Banks as the research variables, considers the time span, use system GMM estimation method and empirically analyses the interaction between charitable donation and financial performance of banks. The results show that:The charitable giving that lag one year is playing a significant negative role in promoting the financial performance. But the current charitable and the charitable giving that lag two years both have no significant negative correlation with the financial performance of banks. The current charitable donation and charitable giving that lag one year both have a significant positive correlation with the charitable giving of banks. Therefore, the charitable giving of banks has on significant correlation with the charitable giving of banks.