Research On The Relationship Between Philanthropy And The Financial Performance Of The Company

With the development of social economy and the transformation of personal values,people pay more and more attention to the behavior of corporate charitable donations.At the same time,researchers are more enthusiastic about charitable donations research.What is the impact of charitable donations on financial performance?Firm visibility as a special attribute of the enterprise,has a significant impact on stakeholder knowledge of corporate information.For enterprises,the level of its visibility will affect the value of corporate charitable donations?In addition,China has a vast area of significant difference,different regions have different institutional environments.So,in different institutional environment,are there any differences in the impact of corporate charitable donations on corporate financial performance?In order to explore the above problems,takes the listed companies from 2010 to 2014 for five consecutive years donated as samples to explore the effect of the value of charitable donations.The empirical results show that corporate charitable donations have advertising effect,can enhance the company's image and reputation,to enable consumers to produce moral identity to enterprises,which will ultimately help the enterprise to obtain economic effects.Further empirical results show that the higher the visibility of the enterprise.the positive impact of corporate donation is more significant.In addition,in regions with high levels of marketization,donations are more relevant to financial performance.In the market economy conditions,corporate charitable donations are already showing a rapid development trend.Enterprises must recognize the objective and inevitability of this trend,take the initiative to assume their social responsibility.Only responsible companies can win respect and go further.Therefore,this paper proposes that the charitable donation should be raised to the strategic level of the enterprise,according to the actual situation of the enterprise systematically consider the donation.Meanwhile,the Government should correctly guide enterprises,for enterprises to create a good atmosphere of' charity culture,so that charity go further.