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Impact Of Charitable Endowment On Debt Financing Of Private Enterprises

Posted on:2020-01-18Degree:MasterType:Thesis
Country:ChinaCandidate:Y P ChenFull Text:PDF
GTID:2417330590493476Subject:Finance
Abstract/Summary:PDF Full Text Request
The private enterprises have been faced with more serious financial constraints.Because of the existence of information asymmetry,moral hazard and other reasons,it is difficult for the private enterprises to obtain the necessary financial resources;and the private enterprises do not have the policy-oriented inclination as the state-owned enterprises.But in the face of the financial difficulties,the private enterprise has always been the backbone of the charity donation,its donation is the first every year,and even some of the loss-making enterprises will also make a donation.In order to explain the phenomenon,this paper adopts the data from 2007 to 2017,based on the two perspectives of the market and the government,to study the effect of charity donation on the debt financing of private enterprises.First,the charitable donation releases the positive signals of good financial information,good prospects and good cash flows of the enterprise,and helps to build a good reputation.At the same time,private enterprises can exchange resources with the government through charitable donation.The first assumption in this paper is that the charity donation of the private enterprise can help the enterprise to get more debt financing.An empirical test is carried out on the specific gravity of the total assets as an explanatory variable.Second,I study the possible ways of the charitable donation to the debt financing.The two variables of market attention and political association are selected to study.Because the positive signals and good reputation of the enterprises with high market attention are more likely to be observed and responded positively by potential creditors and investors in the market.The political association,as a measure of the relationship between the government and the enterprise,may also constitute a way of influence.The cross terms of market attention,political association and charitable donation were added in the basic model.Thirdly,this paper studies the effect of the external financial environment on the relationship between the charitable donation and the debt financing.Because the degree of marketization is opposite to the influence direction of the political association and the market attention,the influence of the government approach(political association)and the market approach(market attention)can be judged through the general direction of the influence of the market-oriented influence on the charity donation.Finally,based on the long-term loan rate and short-term loan rate of the enterprise,the influence of the charitable donation on the debt-term structure of the private enterprise is further studied.The results show that:first,the enterprise that carries out the charitable donation can get more debt financing.Second,enterprises with high market attention and non-politically affiliated enterprises can obtain more debt financing.Third,in the low-market region,the positive effect of the charity donation of the enterprise on the debt financing is greater,and the leading role of the two is the way of the exchange of the enterprise and the government resources.Fourth,more long-term loans can be obtained by a charity-donated enterprise.The conclusion of this paper shows that the charitable donation can bring the economic benefit to the enterprise,it is a strategic investment of the enterprise.The innovation of this paper has the following three points:first,literatures before are mostly from the angle of signal transmission or the exchange of the resources,but I put the theory in the framework of the market view angle and the government angle,a more comprehensive description of the possible theoretical logic.Secondly,when considering the influence of the political relationship,this paper draws a contrary one to others.The sample years of other authors are mostly three years,and mine is 11 years,so the reliability of the data is not too low.Third,based on whether the signal can be captured in the market,this paper puts forward the way of market attention,and uses the Baidu index.And two market attention variable have been constructed by hand-collecting.
Keywords/Search Tags:private enterprises, charity donation, debt financing, market attention, political connection, marketization, debt maturity structure
PDF Full Text Request
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