An Empirical Study On Corporate Philanthropic Giving And Stock Price Volatility

With the awakening of corporate social awareness,as one of the manifestations of fulfilling social responsibility-philanthropic giving began to receive widespread attention from all walks of life.Social welfare access daily life as the example of the hot charity fundraising party,"Internet plus"public welfare and diverse forms of donation.Philanthropic giving,as the third form of economic wealth distribution,is the outflow of real money from enterprises.Whether enterprises fulfill philanthropic giving is to stand at the high point of moral consciousness and try to benefit the whole society,or to be self-interested in order to better realize their own economic interests are still controversial.Economy soared with the increasingly exoteric degree of domestic financial market and the increasingly massive stock market,but the volatility increase at the same time.In the global financial crisis of 2008,CSI300 index surged to 6100 then fell to 1600,which followed by meltdown twice.The violent volatility caused negative impact to investors,the capital market and the nation reform.Researches show that informations play an important role in the volatility(Lei Zhen et al.,2016)[1],and philanthropic giving,as a strategic decision of the enterprise,conveys the stable signal to outside.Whether this signal can be accepted by the capital market is controversial now.In summary,this paper will study the impact of corporate philanthropic giving on volatility,the reaction between the corporate philanthropic giving and volatility from a unique perspective of analysts.Hypothesis of this paper is based on the stakeholder theory,strategic philanthropy behavior theory,signal transmission theory and reputation effect theory by combing the existing literature on philanthropy giving,analyst attention and stock price volatility.Meanwhile,this paper studies the philanthropy giving data from 2013 to 2017 of all listed companies in Shanghai and Shenzhen stock market to explore the impact of philanthropy giving on volatility from the perspective of analysts'attention.The results show that:(1)corporate philanthropy giving performance significantly inhibited stock price volatility;(2)analyst attention play an intermediary role between corporate philanthropy giving and stock price volatility.This paper studies the performance of philanthropy giving from the perspective of market price response in long-term,which broadens the relevant research,fills gaps of extant research,helps to provide plans for management and investment.