Study On The Substitution Effect Of Donation Expenditure On Advertising Expenditure Of Listed Companies

In 2008,after the Wenchuan earthquake,the assistance of enterprises to the society has become increasingly prominent.The new enterprise income tax law of China has increased the deduction amount of public welfare donation expenditure.With the healthy development of stakeholder theory and corporate social responsibility theory,charitable donation,as the most intuitive manifestation of corporate social responsibility,can not only reduce taxes and fees,but also reduce the financial pressure of the government and alleviate social conflicts,which is of great significance to achieve mutual benefit and win-win between society and enterprises.At present,most enterprises use charitable donation to expand the popularity of enterprises,establish brand image,etc.,and study the influence intensity of donation amount and advertising expenditure on business results(including the signal effect on the market and financial performance)respectively,which is conducive to exploring whether there is an alternative role of donation expenditure on advertising expenditure in enterprises,optimizing the cost allocation scheme of enterprises;seeking to improve It is feasible to improve the corporate image,obtain intangible capital,maintain market share,improve customer loyalty,reduce sales costs and maximize profits.It also puts forward specific countermeasures and suggestions to encourage enterprises to participate in social donation scientifically,reduce national financial pressure,narrow the gap between the rich and the poor,and alleviate social conflicts.Therefore,the study of this problem has a certain research application value.Combined with the behavior of charity donation of enterprises in the last 10 years,the phenomenon of government's policy preference for charity enterprises and the government's requirements for tax reduction and fee reduction of enterprises,this paper takes the donation behavior of listed enterprises after 2008 as the research object to understand the evolution process of enterprises' attitude towards charity donation and the status quo of enterprises' charity donation.Using multiple regression analysis and regression coefficient significance test to confirm the impact intensity of charitable donation on business results,and make a comparative study with advertising;using Hansen threshold effect model to verify the direct relationship between donation expenditure and advertising expenditure;selecting 11 years(2008-2018)enterprises with continuous donation behavior as a typical case,to study the impact of charitable donation on business results and advertising The long-term role of publicity and publicity should be informed,and specific suggestions should be put forward to encourage enterprises to make scientific charitable donations.This paper is divided into seven chapters in structure.Among them:the first chapter is the introduction;the second chapter is the related concepts and theoretical basis;the third chapter is the analysis of the current situation of donation expenditure and advertising expenditure of Listed Companies in China;the fourth chapter is the research and design of the substitution effect of donation expenditure on advertising expenditure of listed companies;the fifth chapter is the empirical analysis of the substitution effect of donation expenditure on advertising expenditure of listed companies;the sixth chapter is the charitable donation of listed companies The seventh chapter is conclusion and prospect.Empirical research shows that:first,compared with advertising expenditure,donation amount also has a positive impact on business results.Second,compared with advertising expenditure,the positive effect of donation amount on market signal is stronger;the positive effect of donation amount on financial performance is not statistically significant different from advertising expenditure.Third,the substitution effect of relative donation level on advertising expenditure can be divided into three stages.With the increase of donation amount,the substitution effect of advertising expenditure gradually weakens until it disappears,and finally turns into promotion effect;when the donation amount is low or medium,the relative donation level has significant substitution effect on advertising expenditure;when the donation amount is high,the relative donation level and advertising expenditure The relationship between them is significant positive correlation.Fourth,the positive effects of donation amount and advertising expenditure on business results are not statistically significant,and the substitution effects of relative donation level on advertising expenditure are not statistically significant.Finally,it puts forward to establish social responsibility awareness from top to bottom,strengthen product characteristics in combination with corporate culture,establish corporate social responsibility standards in gradient,share and improve social responsibility disclosure mechanism,improve long-term return on investment of cash flow,rationally adjust donation amount of small and medium-sized enterprises,strengthen emotional connection of customers through donation behavior,shape corporate brand image through donation behavior,and take customers as marketing strategy Take value as the core,strictly control product quality and synchronize enterprise image.It is necessary and significant for enterprises to fulfill their social responsibility.The study of this issue will play a theoretical guiding role in improving the disclosure mechanism of corporate social responsibility,alleviating social contradictions and saving social capital.