Empirical Research On Corporate Donation And Finance Of Chinese Private Enterprises

Corporate donation is one of the important ways of social responsibility.From a macro terms,corporate donation makes up for the lack of government functions,thus contributing to the social welfare;from the terms of the micro,donation enables enterprises to have a positive moral capital,so as to enhance the financial and market performance.Thus,corporate donation has become a hot research topic concerned by the financial theorists.The Chinese market economy prefers for state-owned enterprises,and that makes a hard development of private enterprises.Even so,donation of private enterprises is still an important force in corporate donation.So what is the reason to support private enterprises to maintain donation? This is a hot research scholars too.The article discusses how the private corporate donations to influence the situation of Enterprise Financing,including debt financing and commercial credit financing.And at different levels of social capital,whether their relationship will change.We use Chinese private enterprises in the sample data for the period 2009-2014 to have the empirical analysis.The results show that corporate donation is a strategic behavior that to seek resources.At different levels of social capital,the influence of corporate donations for corporate finance is different: in areas of high levels of social capital,corporate donations less ease financing constraints,the effect of promoting enterprises to obtain debt financing and commercial credit financing is lower;while in the low levels of social capital,the effect of promoting will be higher.Secondly,through literature review analysis,we further found that social capital on political association has a more significant role in alternative.For Chinese private enterprises,we provide a new interpretation of the microscopic mechanism that private enterprise can develop in the absence of a sound financial system.And we provide a new empirical evidence that during the transition economies in China,the informal system can play a complementary role to the formal financial system.Second,at present,research is focused on the effect of corporate donations to political association.Otherwise,there are also preliminary study of social capital scholar for the impact of corporate donations,but more based on theoretical analysis.The article is based on previous studies,and do a further research on the impact of social capital level how to affect corporate donations,and we use the empirical research to support it.