Research The Impact Of Corporate Philanthropy Giving On Financing Constraints

Since the Listing Corporation Social Responsibility Information Disclosure System was established in China, many companies have taken on bearing corporate social respongsibility, making philanthropy giving as the development agenda. They showed great donation enthusiasm and sense of social responsibility in donation since the wenchuan earthquake. However, the corporate philanthropy giving is a company’s volantary unpaid donation. In fact, it is purely an assest disposition. While we’ve found that there is a widespread phenomenon of financing constraints in enterprise, based on the research of the present enterprise financing situation. It will undoubtly aggravate the burden of enterprises to fulfill their social responsibility, which seems conflict with the economic interests of the company. In fact, enterprises will win competitive advantage by corporate philanthropy giving for its increasing of enterprise moral capital, improving the image of enterprise reputation, promoting the sense of staff’s belonging and culture identity, increasing consumers’trust, favoring by investors, emboldening the understanding of enterprise stakeholders, and finally reduce the degree of financing constraints. So, corporate philanthropy giving can help enterprises to achieve the goals of economic, in the long run, will be beneficial to the integration between companys’economic rationality and social moral.This dissertation collects data from 2010 to 2014 from firms listed in the Chinese A-share stock market, we discussed whether corporate philanthropy giving can ease the financing constraints by empirically examining the panel data samples. And then preliminarily discussed the rationality of donation amount, the time lag of its ipmroving financing constraints and whether it is necessary to resist on the long-time philanthropy giving.The results of this dissertation indicate that:(1) Enterprises can alleviate the financing constraints by corparate philanthropy giving. (2) There is a U-shaped pattern between corporate philanthropic giving and financing constraint. For those companies that do donate, with the increasing of charitable donation amount, the financing constraint problem will reduce at first; when the donation amount exceeds a certain amount continues to increase, enterprise financing constraint problem gets to be worse. (3)Corporate charitalble donation has time lag effect on reducing financing constraints, the time is 1 year. Indicate that the charitable donations can allivate financing constraints in this period and next period. (4) Contrast to the the short-time donation group, the negative relationship between charitable donations and financing constraints gets to be more stronger in the long-time donation group. For those donation enterprises, a long-term and stable charitable donation strategy should be established to maintain and enhance the financing constraints of philanthropy giving.The results of this dissertation enrich the literature on corporante philanthropy giving and finacing constraints; it also provides reference experience for the enterprise managers and departments to pay attention to the sustainable development of enterprise while contributing to society by fulfiling social responsibility; and provides a new approach to improve the enterprise financing constraint problem.