Empirical Study On The Impact Of Executive Compensation On The Donation Income Of The Public Offering Foundation

Charity,born from the kindness of human nature,has been in the continuous development in the history of human civilization.In the 21st century,with the continuous development of China's economy,the public demand and concern for charity,has also been raised to a new height.Among them,the public offering foundation,as a charitable organization for the public donations,is an important part of non-profit organizations,and is now the main sponsor of social charity.For the public foundations,the ability to attract donations,that is,the indicator of donation income is the fundamental of its operation,and also the core of its existence.Executive compensation,as an important indicator that has been broadly analyzed in profit-making organizations,has not had much contact with the public foundations due to disclosure restrictions.As the information disclosure of the public foundations began to improve in recent years,this paper has been able to collect the executive payment data in recent years,and study the core data of the donation income in the charitable foundation for charitable purposes influences.This paper first reviews the existing research,reviews the development process of charity,public offering and information disclosure,and analyzes the feasible conditions of the study.Subsequently,this paper puts forward the positive effects of executive compensation on donation income-the incentive hypothesis,and the possible negative effects of executive compensation on donation income-negative signal hypothesis.By proposing the opposite theoretical basis of the two effects,two opposite hypotheses are put forward.It is hoped that through the empirical study,the degree of the effect of these two opposite effects is analyzed.This paper chooses all the basic information and financial data that can be collected from 2010 to 2014,which is disclosed on the website of China Foundation Center,and collects all the data manually.Subsequently,through data processing and screening,603 observations remain to the regression analysis.When specifying the regression model,this paper choose the donation income as the dependent variable,choose the executive compensation from the previous year as the independent variable,and select a series of indicators from the previous year as the control variable,and get the regression result.In our current environment,for the public offering foundations,the impact of executive compensation to the donation income is significantly positive.The incentive effect of executive compensation is more obvious,and the negative signal is less obvious.Then,the robustness tests of the dependent variable and the independent variable are tested,and then the difference between the years difference between the areas are further tested.These results support the result of the main test.Finally,this paper summarizes the test results and puts forward some suggestions on the public offering foundations.At the end,this paper reflects the limitations in the study,and puts forward the prospect of future research.