Chritable Donation,Investor Confidence And Corporate Value

With the continuous progress of social civilization and the development of social economy,enterprises,as important economic participants,have drawn more and more attention to their social morality and behavior.While pursuing the maximization of owners’interests,enterprises have gradually realized the necessity of taking social responsibility.As a relatively easy way to fulfill social responsibility,charitable donation has gradually become one of the significant indicators of enterprises.Will charitable donations have positive or negative value effects?Scholars have not yet reached a unified conclusion.Therefore,this paper will study the psychology and behavior of investors from the perspective of behavioral finance,hoping to help enterprises make better decisions on charitable donations.Based on the a-share listed companies in Shanghai and shenzhen from 2008 to 2017,this paper studies the impact of sustained philanthropic donations on corporate value.By focusing on reputation capital and stakeholders,this paper explores the mediating effect of investor confidence in charitable donation and corporate value.We preliminarily conclude that charitable donation is significantly positively correlated with enterprise value.And the positive correlation is partly direct and partly indirect through the transmission of investor confidence.In other words,investor confidence produces partial intermediary effect.Further classifying the samples,the paper analyzes the mediating effect of investor confidence from the perspective of property right nature,marketization degree and whether the enterprise violates the regulations or not.The conclusions are as follows:(1)Compared with state-owned enterprises,the mediating effect of investor confidence on the positive correlation between charitable donation and enterprise value is more significant in private enterprises.Private enterprises’ independent charitable donation can attract more investors’attention,thus producing value effect.(2)Compared with enterprises with low marketization degree in the region,the mediating effect of investor confidence on the positive correlation between charitable donation and enterprise value is more significant in enterprises with high marketization degree.(3)Compared with compliance enterprises,the mediating effect of investor confidence on the positive correlation between charitable donation and enterprise value is more significant in the offending enterprises.This paper studies the intermediary effect of investor confidence in different situations from the perspective of behavioral finance,which can enrich the mechanism of the value effect of enterprise charitable donations and provide new ideas for theoretical research.At the same time,it can also improve the enthusiasm of enterprises to undertake social responsibility,help them better establish the awareness of philanthropic strategy,and promote the sustainable and healthy development of enterprises.