An Empirical Study On Philanthropy And Corporate Performance

In the context of sustainable economic development, more and more corporate pay attention to the corporate social responsibility. As the highest form of the corporate social responsibility, charitable donations also payed attention by the companies and academic. The charitable donations in Western countries already have a long history of development and they also have a relatively complete set of public service management philosophy and management system. However,our charitable donations is still in a stable development process. Form the point of the present development of charitable donations in China,more and more corporate to participate in the charity groups and it presents a rapid development trend. Our charitable donations development has entered the important transition and the charity law will be issued with a strong calls for the public soon.TianJing Port explosion which happened in August 12,2015 made the country once again into a charitable donation boom. And the “MaYun be donated”events revealed a series of questions of charitable giving: Whether the charitable donation is the duty of the corporate social responsibility? Can enterprise obtain economic benefits from the “advertising effect”of the charitable donations? Whether the individual behavior can affect the entire enterprise executives charitable donation behavior? Whether charitable donation will affect the company’s financial performance? Based on the above questions, this paper selects the 155 private listed enterprises of the light industry as sample target. Using its five years of data in 2010-2014, theoretical analysis and empirical analysis method to study the influence factors of charitable donation and how the charitable donation affected the corporate financial performance.Based on the research this paper divided into six chapters. Firstly, this paper introduced the research background and significance of this article. Secondly to the existing research literature at home and abroad,the related concept definition, and generalizes the basis of theoretical analysis. Thirdly this paper analyzes the present status of the charitable donation and the disclosure of the status quo of the Social Responsibility Report in China. Then established research model and multiple regression by using EVIEWS6.0. Finally this paper research conclusion,summarized the limiation od this study,and put forward some policy suggestions for future research.The research shows that corporate charitable donations and financial performance is positively correlated, suggests that the corporate charitable donation had a facilitating role on financial performance. Further charitable donations behavior didn’t get a good advertising effect, the reason may be the “donation fraud”,“cheat donate”events frequently exposure this years. So the public has a crisis of confidence for the charitable donation. The research also proved that company executives get higher salaries will make it tend to be charitable donation,and the size of board of directors has no obvious impact on corporate charitable donation.