Control Of Large Shareholders, Equity Balances And Corporate Public Welfare Donations

With the deepening of economic globalization and the development of corporate social responsibility, corporate social responsibility has been widespread concerned in the community. Corporate donations as an important measure to balance interests between corporations, the public, government and other stakeholders, have become an important approach to perform corporate social responsibility. The ownership structure is an important part of corporate governance structure, affects the enterprise's various business decision-making, strategic decision-making and monitoring mechanisms. Corporate donations as one of the important strategic decisions, are affected by many factors. This article based on corporate ownership structure, researches the influence of large shareholder control, equity balances on corporate public welfare donations.Based on existing researches, corporate social responsibility theory, the stakeholder theory, the theory of principal-agent and strategic donations, the paper focuses on the analysis of large shareholder control, equity balances on corporate public welfare donations, using the A-share listed companies in China from 2008 to 2013 as sample. The study finds that control of large shareholders especially the first shareholder, significantly reduces the level of corporate public welfare donations, equity balances enhance the level of corporate public welfare donations and inhibit the effect of large shareholder control. Compared with the state-owned corporations, the effect of large shareholders and equity balances on public welfare donations only exist in private corporations, the effect that equity balances inhibit large shareholders' reducing effect is on a higher degree. According to the market level research, the result is that reducing effect of large shareholders control and equity balances only exist in lower market level areas.This article reveals the mechanism of the effect of ownership structure on corporate donations, and the differences under different nature of property right and marketing level, which is important to understand the influencing factors of corporate donations. This paper put forward these measures: corporations should carry out strategic to achieve win-win standard between donations and community, maintain equity appropriate concentration and increase equity balances; the government should regulate corporate donation, improve market environment.