A Study Of The Relationship Between Executives' Political Identity?Charitable Donations And Credit Financing Constraints

The private enterprises promoting Chinese Economy to develop still are in a weak position in the financial markets under the economic transformation.The government holds the configuration rights of the financial resources.Then most enterprises select the way to establish contact with the government for the financial resources.Charitable donations that conform to the social public values and have no legal risks become the first way to link the enterprises and the government.What is the relationship executives' political identity,charitable donations and the credit financing constraints? So this paper takes the survey data from the private enterprises in Jiangsu,Zhejiang and Shanghai as sample,then tests the path that executives' political identity eases the credit financing constraints with multiple regression analysis and structural equation model based on the brand-new perspective of charitable donations.The study identities the influence of executives' political identity and behavior characteristics of charitable donations on the various indicators of credit financing constraints.The article not only enriches the existing research system of financing constraints but also provides guiding suggestions to promote the private enterprises to develop healthily.Firstly,the study finds that executives' political identity can help the private enterprises to maximize long-term bank loans at a relatively low loan cost.In addition,the higher level of executives' political identity,the more significant effects of easing credit financing constraints.Secondly,compared with the non-political identity of enterprises,the private enterprises in which executives have political identity show more obvious strategic donation motives,higher level of donations and better donations effects,and the higher level of executives' political identity,the more enthusiasm of participating in charity.Thirdly,the influence of charity behavior on the various indicators of credit financing constraints is significant and positive,except the influence of donation level on credit demand satisfaction and donation effect on loan time limit.Fourthly,charity behavior acts the role of partial mediation effect in the path of executives' political identity eases credit financing constraints.