An Empirical Study On The Impact Of Charitable Donations Of Private Listed Companies On Financial Performance In China

Along with the progress and development of civic responsibility concept, the voice of enterprises should be required to fulfill social responsibility becomes much more high. Charitable giving has been regarded as important form of the enterprise to fulfill social responsibility. So, as a non-daily activities, what the impact of charitable giving to enterprise's financial performance?About charitable donations, the foreign enterprise has a wealth of practical experience. But in China, the society responsibility consciousness in many enterprise is not strong, charitable donations are often as a task to help the government to save a lot of problems. From the perspective of the theory study of charitable donation, there is a fruitful research achievements abroad, while our country was still in the stage of primary research. Domestic scholars study of corporate philanthropy mainly concentrated in three aspects:the motivation of charitable giving, influence factors and economic consequences. Because most charitable donation research are taking research on the WenChuan earthquake in 2008 and under the influence of the limitation of research methods and techniques, there comes non-unanimousnon conclusion. Over the years, our country private enterprise performance was active in the charity cause. According to the statistics of China charity donation report, we can easily find out that the contribution of private enterprises of our country charitable donation is huge, they become an integral part of backbone to push China charity towards a new level. However, academia for private enterprises of charitable giving and charity on financial performance of the specific mechanism research is very lack, theoretical research is not consistent with the pace of enterprise practice. Due to private enterprise has no inherent contact with the government, they has no political advantage compared with the state-owned enterprises. So, the effect of charitable donation to financial performance in private enterprises will be different from the state-owned enterprises. Based on the background of charitable donation upsurge of private enterprises, we make a depth discussion and analysis of the charitable donations to the mechanism of the financial performance of private enterprises, use the mediation effect model to answer what is the specific path of influence of charitable giving to financial performance? And whether political relation in private enterprises plays an intermediary factor in charitable giving impact to financial performanceFirst of all, based on CNKI, EBSCO database, use "essay contains' charity 'or' performance' or 'political association" content retrieval conditions refer to the related literature at home and abroad, review and summarize the motivation of charitable giving, charitable giving impact on business performance and political associated impact on financial performance. Secondly, combining with the stakeholder theory, reputation theory, resource dependence theory and the theory of corporate social responsibility. From two dimensions to do analysis and assumptions of private enterprises of charitable giving impact on financial performance. First, the charitable donations passing a good message to the enterprise internal and external, it can increase the reputation of the enterprise capital value, help enterprises to gain the intangible capital that competitors difficult to replicate, open the product sales, increase revenue, improve business relations with many stakeholders, reduce business transaction costs in the production and business operation activities, so as to improve enterprise's financial performance; Second, private enterprises use charitable donations gradually formed the implicit contract between government and enterprises, to maintain and enhance the effect of contact between enterprises and government, it will make the enterprise get more relaxed business environment and plenty of scarce resources, and reduce the risk of a business, then indirectly promote the enterprise's financial performance. That is to say, political association of private enterprises play an intermediary role in the influence of charitable donations to the enterprise financial performance. We select 2010-2013 for charitable donations for four consecutive years of private listed companies as the research object, using the CSMAR database, collected the data for empirical study and 1084 research samples, use SPSS 19.0 statistical software, hypothesis test model was put forward by the descriptive statistical test, correlation analysis, multiple linear regression analysis and robustness testing. Finally, we get the following conclusion:private enterprise of charity behavior, not only have direct positive impact on corporate financial performance, but also can promote the political relation between government and the enterprises to obtain scarce resources and thus indirectly lead to an improvement in financial performance.There are two main innovation of this paper:first, the difference from the existing mainstream research that select one year happened charity behavior of the enterprise as the research object, this article selects four consecutive annual average for charitable donations of private enterprises as samples, the research conclusion is more reliable. Second, we combined with the important role of political association of private enterprises, study the charitable donations, the political and financial performance together, use mediation effect test model innovative to give a new explain of charitable giving impact on financial performance in private enterprises. Make the research conclusion of the relationship between charitable donations and financial performance in private enterprises tend to be more precise. Enrich the theory research in the field of the economic consequences of charitable giving in private enterprises. It has a great significance for stakeholders to give a reasonable treatment of enterprise charity activities.