Charitable Donations,Bank-enterprise Relationship And Financing Constraints

The importance of funds relative to enterprises is just like the blood to us,it's necessary for enterprise to maintain a flexible and holonomic capital chain for the survival development,therefore,financing has become the eternal topic which is concerned and investigated by enterprise and academia.However,in the present situation,enterprises are facing serious financing constraint problem.Recently,the term “social responsibility” has aroused a widespread concern both in theoretical and practical circles,as an important form of corporate social responsibility,charitable donation has become the focus of public concern.Existing research shows that the charity to help enterprises to improve performance,but is charitable donations can alleviate the financing constraints is yet to be determined.On the other hand,it's a practical way obtaining external financing for enterprise to obtain bank loans by establishing relationship with banks.The enterprises urgent to improve this financial distress because the financing constraints hindered the development of the enterprise,limit the growth of the enterprise.Charitable donation and bank-enterprise relationship play an important role in alleviating financing constraints,but there are few relevant researches.Therefore,this study is aimed at researching the influence of charitable donation,bank-enterprise relationship on financing constraints and mitigating financing constraints,which has significance of theoretical and practical guidance.This study reviews and summarizes the achievement of previous research,based on principal-agent theory,stakeholder theory,resource dependence theory,strategic charity theory,information asymmetry theory,pecking order financing theory and relationship financing theory,draws lesson from the cash-cash flow sensitivity model proposed by Almeida,Campello and Weisbach(2004),establishes a new model by adding charitable donation,bank-enterprise relationship proxy variables,demonstrates to study the influence of charitable donation and bank-enterprise relationship single variable on financing constraints and the combined action of charitable donation and bank-enterprise relationship on mitigating financing constraints.To probe into the above problems,this study has selected the data of Shanghai and Shenzhen A-shares non-finance listed companies in 2012-2016 as the research samples where takes a descriptive statistics and correlation analysis,and establishes model to take multiple regression analysis for verifying the mitigating influence of charitable donation and bank-enterprise relationship on financing constraints by using the method of combining the theoretical analysis and empirical analysis.The empirical study finds that China's listed companies have generally faced a serious financing constraints,which could be mitigated by charitable donation and bank-enterprise relationship.A further study on grouping samples shows that charitable donation and bank-enterprise relationship,as two kinds of external action mechanism,have bucking effect in alleviating financing constraints.To be specific,Compared with companies with high donor level,it's more significant for low level ones to mitigate its financing constraints by establishing bank-enterprise relationship.And compared with companies Compared with the listed companies that have established the bank-enterprise,it's more significant for ones have not established the bank-enterprise relationship to mitigate its financing constraints by giving charitable donations.Based on the above conclusion,in order to create a good financing environment,promote the enterprise bear the social responsibility,this paper puts forward relevant ideas and suggestions respectively from the perspective of government regulation and enterprises: the government should intensify supervision and charitable giving preferential policy,and enterprises should actively establish relationships with the bank to obtain external finance,etc.