Corporate Philanthropic Giving And Trade Credit Financing

In transition economies,the problems of "financing difficulties" and "high financing cost" are widespread.As a kind of alternative financing method,trade credit provides new financing channels for enterprises that are troubled by financing constraints.Whether for individual enterprises or for the whole national economy,trade credit financing is of great significance.How to make full and reasonable use of trade credit financing?From a unique perspective,this paper explores the impact of corporate philanthropy giving on trade credit financing.Based on Asymmetric Information Theory,Signalling Theory and Reputation Theory,this paper analyzes the relationship between corporate philanthropic giving and trade credit financing,collects data of firms listed in the Chinese A-share stock market from 2007 to 2014,establishes model and carries on empirical test.The results indicate that:(1)There is a significant positive correlation between corporate philanthropic giving and trade credit financing,that is,the more enterprises donate,the more trade credit resources they obtain.(2)Compared with the state-owned enterprises,the positive correlation between corporate philanthropic giving and trade credit financing is more significant in private enterprises,that is,private enterprises'philanthropic giving can help them get more trade credit resources.(3)In the area with higher degree of marketization,the positive correlation between corporate philanthropic giving and trade credit financing is more obvious.Further,this paper measures the process of marketization in multiple dimensions,and draw the following conclusions by further test:in the area with lower degree of government intervention,the positive correlation between corporate philanthropic giving and trade credit financing is more significant;the level of regional financial development can promote corporate philanthropic giving's positive impact on trade credit financing;legal system environment can promote corporate philanthropic giving's positive impact on trade credit financing.The results of this paper support the strategic motivation theory of corporate philanthropic giving,and enrich the research findings in the cross field of philanthropic giving and trade credit.It has an important reference value for the enterprise's charitable decision,and provides a new way to solve the constraint of trade credit financing.The innovations of this paper are as follows.Firstly,based on Asymmetric Information Theory,this paper also chooses some new perspectives,such as "signaling" and "reputation-trust",to explain the impact of corporate philanthropy giving on trade credit financing.Secondly,based on the discussion of the relationship between corporate philanthropy giving and trade credit financing,this paper further explores both the influence of property rights and regional development environment on the above relationship.