Empirical Study On The Crowding-out Effect Of Government Expenditures On The Philanthropy Of Private Enterprises

The philanthropy of private enterprises is affected by many factors.This paper takes the charitable donation data of 945 private enterprises from 2007 to 2015 as the sample,and examines the crowding-out effect of government expenditures on private enterprises philanthropy empirically.Furthermore,this article examines the effects of per capita GDP and per capita charitable donations.This empirical study found that the government expenditures on charitable donation has a partial crowding-out effect on the private enterprises philanthropy.And this effect mainly occurs in regions with relatively backward economic development or lower per capita social charitable donation.The results held true after a series of robust analyses.The empirical results of this study show that private enterprises make strategic charitable donations to respond to the pressure from all stakeholders,and achieve the unity of economic and social benefits.The government is the social stakeholder of the enterprise,and is an important factor for private enterprises to obtain resources needed for survival and development in an uncertain environment.In China,private enterprises due to the pressure of ownership,have more incentives to participate in charitable giving.This behavior helps private enterprises build relationships with government agencies and have access to superior government resources,which is helpful to obtain competitive advantages in the fierce market.The research of this paper is based on China's local private listed companies,and examines the logic that government expenditures crowd out charitable donations from private listed companies from the perspective of philanthropy crowding-out effect.Subsequently,this study has examined the economic and social factors' effect,including the per capita GDP and per capita charitable donation,on private enterprises philanthropy.It is important to understand the affecting factors of private enterprises philanthropy in the period of deepening reform and opening up in China.