A Study On The Mechanism Of Philanthropy To The Performance Of Listed Tourism Companies In The Domestic Situation Of China

In recent years, the enthusiasm of Chinese companies to participant in social welfare has been increased, and raised closely attention of the public. In western countries the study of corporate philanthropy is mature, while the operating mechanism of China’s market economy remains to be improved, and corporate philanthropy was still in the preliminary stage of development, and the academic still dispute whether companies should involve in philanthropy and whether philanthropy can have positive impact on corporate performance. So, this paper closely integrated with the domestic situation of China to analysis the motivation of companies to participate in the charitable donation; and selected listed tourism companies as sample to explore whether the philanthropy of listed tourism companies have an impact on firm performance, and their impact path. Further, the paper divided the whole research sample interval into two sample intervals at the year of 2008, and tested the difference of mechanism of philanthropy to the performance of listed tourism companies before and after the “Wenchuan Earthquake”.The paper mainly include the following four aspects: The first part analyzed the motivations of corporate philanthropy in the domestic situation of China. The paper based on the existing literature to discuss the theory of corporate philanthropy, then put forward the motivation theory of this paper. The second and the third part was to study the mechanism of philanthropy to the performance of listed tourism companies. The second part elaborated whether the corporate philanthropy has bond effect between government and tourism companies. This section used multiple regression to examine the relationship between philanthropy and organizational slack of listed tourism companies during 2004-2014. The third part verified the role of philanthropy of listed tourism companies, "supporting hand" or "grabbing hand". This section applied multiple regression and hierarchical regression method to analysis the mediation effect of organization between philanthropy and firm performance of listed tourism companies, and revealed the mechanism and the impact path of philanthropy and firm performance. The fourth part discussed before and after the “Whenchuan Earthquake” the difference of mechanism of philanthropy to the performance of listed tourism companies. In order to identify the mechanism trend of philanthropy and firm performance, the paper analyzed the two sample groups respectively, then explained the reasons for the differences.The paper’s three results as follows: Firstly, the corporate philanthropy and organizational slack showed significant positive correlation, indicating that philanthropy has bond effect between government and tourism companies. Secondly, the corporate philanthropy can significantly improve the financial performance of listed tourism companies. Thirdly, the philanthropy indirectly positively influenced the firm performance of listed tourism companies through the intermediary role of organizational slack, showing that the corporate philanthropy play a “supporting hand” role in influencing firm performance. Then, by comparing the empirical analysis of the two sample groups, we found that the corporate philanthropy and firm performance showed significant positive correlation, and after “Wenchuan Earthquake” the positive impact of philanthropy on firm performance was strengthened; further found that organizational slack played partially mediating role between philanthropy and firm performance, but after “Wenchuan Earthquake” the positive impact of philanthropy on firm performance through the mediating role of organizational slack was reduced. Then, according to the conclusions, in order to promote the continuous improvement of the performance of listed tourism companies, the paper suggests that, on the one hand, listed tourism companies should be long-lasting for philanthropy, strengthening internal management and assessment of philanthropy project and correcting the role of organizational slack; on the other hand, the government ought to accelerate charity legislation and mobilizing the incentive effect of tax.