Research On The Relationship Between Chartiable Donation And Finacial Performance Of Listed Companies In China

With the continuous development of social economy,the public pays increasingly attention to the fulfillment of corporate social responsibility.As the main manifestation of social responsibility,corporate philanthropy has been widely concerned by academia and industry.The foreign research on corporate philanthropy began in the last century in 70s,and up to now,there have been many research achievements;research on the behavior of corporate philanthropy in China started late,China's charity donation craze began in 2008 after the Wenchuan earthquake,the behavior of corporate donations began to widespread concern in society after that.At present,the academic research on the relationship between corporate donation and financial performance have no unified conclusion.The study of corporate donation behavior largely based on the corporate donation amount,there are few studies on the division of donation behavior.This paper uses the method that combined of normative analysis and empirical analysis,on the basis of many related literatures and theories,using 400 isted companies in Shanghai and Shenzhen A-share which disclosed details of the charitable donation information from 2011 to 2014 as the research samples.And then study on the relationship between the amount of charitable donations and corporate financial performance based on the collected data.Also according to different sources,methods,properties,uses and objects to divided donation behavior into five aspects,and then research whether the different donation behavior has significant different effects on the enterprise performance,so as to provide reference for enterprise strategic donation.Key words:charitable donation;financial performance;strategic donation.The empirical study found that:(1)The amount of corporate donations and financial performance was significantly positive correlation;(2)In terms of the source of donation,compared with the situation that use the cash or material object which all from employees to donate,corporate financial performance has a stronger positive correlation with the situation that all or part of the donation is from company;(3)In terms of donation,compared with the situation that use cash to donate,corporate financial performance was significantly positively correlated with the way of donation include object;(4)In terms of the nature of donation,there will be no significant difference in the financial performance between the enterprises which have been donated in a sudden situation and the enterprises that have been donated;(5)In terms of the use of donation purposes,compared with donations for welfare,there is a stronger positive correlation between corporate financial performance and the donation for development;(6)In terms of the donation object,compared with the direct donate to the recipient of enterprise donations,the enterprise through the Red Cross such as charity or donated to the charity organization which held by government has stronger positive correlation with corporate financial performance.According to the conclusion of the study,corporate philanthropy and financial performance is significantly related to enterprises in the use of different sources of donations,donated by different donation way,select different donation objects and methods,all have significant difference impact on financial perfornance.The enterprise can produce a strategic donation according to their own situation,and then reasonable choice the programme which has higher percentage of the benefit divided by cost,to better implementation of enterprise strategic donation effectiveness.