The Impact Of Corporate Philanthropy Of Private Enterprises On Trade Credit

In recent years,the pressure from the government and non-government organizations,the improvement of public awareness and the perfection of enterprise information disclosure have greatly increased the participation of enterprises in social responsibility activities.So what is the impact of corporate actively participating in charitable donations and fulfilling social responsibility on enterprises?Can the enterprise establish a good cooperative relationship with the supplier by participating in social charity activities,thus enhancing its ability to obtain trade credit?As an enterprise's own characteristics,whether the political connection and financial ability of the enterprise will affect the supplier's perception of corporate philanthropy,and whether this influence can prompt the supplier to give the enterprise financial returns in the form of trade credit?In view of this,this paper takes the private listed companies from 2009 to 2017 as the research object,and studies how the corporate philanthropy of private enterprises affects its trade credit from the perspective of supplier perception.we found that private enterprises with high participation in corporate philanthropy can obtain higher trade credit.However,the difference of corporate political connections and financial capabilities may lead to the heterogeneity of suppliers' perception of corporate philanthropic donations.For enterprises with political connections,suppliers are more likely to attribute their donation behavior to“administrative donation” or“passive choice”,which makes donation difficult to be perceived real ethical and thus weaken the promotion effect of corporate philanthropy on trade credit.However,Under the condition that the financial ability of the enterprise does not match its donation expenditure,the supplier will also question the motivation of the enterprise's donation behavior,thus restraining the promotion effect of corporate philanthropy on trade credit.Further studies have found that the promotion effect of corporate philanthropy on their trade credit ability is affected by the trust environment in which the enterprise is located.The results show that only in regions with high social trust,the promotion effect of corporate philanthropy on trade credit is significant.The above empirical results show that the value enhancement effect of corporate social responsibility performance depends on stakeholders' perception of corporate social responsibility behavior.Enterprises should take their own actual situation into account when making charitable donations.For private enterprises with better capitalaccumulation ability and sufficient cash flow,the resources of enterprises are sufficient to meet the normal operation and are more suitable for charitable donation.For private enterprises with government-enterprise relationship,the existence of government-enterprise relationship makes it difficult for corporate philanthropy to obtain positive recognition from suppliers.Therefore,the government should strengthen the transformation of functions,correctly guide enterprises to participate in corporate philanthropy,and encourage positive social responsibility behavior through market mechanism.This study further enriches the research on the value effect of corporate philanthropy,and provides some reference for enterprises to participate in corporate philanthropy rationally and promote the sustainable development of corporate philanthropy of private enterprises.