The Influence Of Family Involvement,Charitable Donation On The Enterprise Performance

Family enterprise is the oldest form of enterprise organization in the world,70%-90% of the world's GDP created by family enterprises,which has a dominant market position in promoting economic development,job creation and social impact.Family involvement is often regarded as the distinguishing feature of family business from other enterprises,so the research topic on the effectiveness of family involvement is favored by researchers at home and abroad.But there are few studies on the mechanism,the current research has black box problem.With the development of social emotional wealth and behavior theory,the family enterprise's pursuit of non-economical charitable donation behavior has attracted scholars attention.The amount of charitable donations by private enterprises in China exceeded 45 billion in 2018,accounting for about 51% of the total donations of enterprises,and the family enterprises as the main force of private enterprises also showed super enthusiasm,getting a win-win situation about wealth and philanthropy.Therefore,the main purpose of this study is to explore the influence of family involvement on corporate performance,pointing out the inter-transduction mechanism from the perspective of charitable donation,and regional differences in the impact of family involvement and charitable donations on corporate performance.This research is not only helpful to promote government departments to speed up the improvement of relevant laws and regulations,but also to help enterprises adjust their governance structure and behavior choices reasonably,and to promote the long-term development of family enterprises and philanthropy in China.Firstly,this paper combs the research situation at home and abroad,that defines the related concepts of family business,and reviews the Principal-agent Theory,Stewardship Theory,Resource-based View,Social Emotional Wealth Theory et al..Secondly,this paper fully combines the reality of the active practice of social responsibility of family involvement and charitable donation on corporate performance,and puts forward corresponding research hypotheses.Then,it expounds the present situation of the development of family business,charity and performance,and analyzes the existing problems.In addition,entering the empirical analysis part of this paper,after the definition of family enterprises and thescreening of sample data,1204 family enterprise research samples of A-share listed in China among2009 and 2018 were selected finally.The experimental study selected panel data fixed effect model for regression,and obtained the relationship between family involvement,charitable donation and enterprise performance.On the basis of this,in view of the differences in the level of economic development,marketization process and the degree of protection of private property rights indifferent regions,this paper further discusses the similarities and differences in the influence of family involvement and charitable donations on firm's performance between the sample enterprises in China,emphatically analyzing the mechanism of family en-terprises in the eastern and non-eastern regions,and discuss the impact of the regional institutional environment on the relationship mentioned above.The whole sample study shows that:(1)family ownership involvement can significantly promote corporate performance,but family management involvement has a significant negative correlation with corporate performance;(2)family involvement can significantly promote the increase of corporate charitable donation;(3)charitable donation has a significant performance improvement effect,and charitable donation has some mediating effect in the influence of family ownership involvement on corporate performance,and there is a shadow effect in the influence of family management right involvement on corporate performance.However,the above conclusions have regional heterogeneity.(4)The regional institutional environment has a regulatory effect in the relationship among family involvement,charitable donation and corporate performance.Finally,according to the conclusion of this paper,it is suggested that the government departments can further narrow the regional differences in the institutional environment,speeding up the establishment of effective regulatory mechanisms,improving the relevant system norms,to promote the benign development of family enterprises and philanthropy in China.As far as the enterprise level is concerned,it is better to raise the level of family ownership appropriately,control the level of management,and raise charitable donation behavior to the strategic behavior choice of the enterprise's long-term development.Especially when the regional institutional environment is bad,charitable donations will lead to significant improments on firm's performance.