The Influence Of Enterprise's Government Policy Understanding On Corporate Charitable Donation

In the past 40 years of reform and opening up,China's private enterprises have firmly grasped the policy dividend and achieved their own rapid development with the spirit of being bold.At the same time,however,due to the one-sided pursuit of profit maximization goals,many companies have neglected their social responsibilities as social organizations,which has led to a decline in overall social welfare.The government,as an organizer and coordinator of various actors in the society,maximizes the overall utility of society by enacting and promulgating various policies.Then,can the company's understanding of government policies not only promote the development of the company itself,but also promote the company to carry out more charitable donations and promote the development and progress of the society with a more responsible attitude?First,based on the Navarro(1988)model,this paper constructs a corporate profit maximization model that includes the influence of government policies,and theoretically explains the impact of corporate understanding of government policies on its charitable giving.Then use the 2012 national private enterprise survey data,comprehensively use PSM,IV and other methods to further test the impact of the government's policy understanding on its charitable donations from an empirical perspective,and further analyze its mechanism of action.The main conclusions of this paper are: the understanding of government policies has significantly increased the amount of charitable donations of enterprises,and the conclusions are still significant after dealing with endogenous problems.Among them,enterprises that understand government policies are compared with those that do not understand government policies.The amount of charitable donations is 51.9% higher.Government policy understands that promoting corporate charitable donations is mainly based on the following two mechanisms: First,the understanding of government policies helps companies understand the actual needs of the entire society,especially the vulnerable groups,thereby promoting the charitable donation of enterprises,that is,the role of information channels;It is the government policy understanding that indirectly makes the enterprise recognize the importance of the external environment to the development of the enterprise,and is willing to establish a good external image through charitable donation to promote its own development,that is,the signal role.