The Impact Of Charitable Donation On Enterprise Performance

According to the 2018 top 500 list of China’s corporate philanthropy and public welfare compiled and released by enterprise observer,the total donation of 500 enterprises on the list in 2017 exceeded 27 billion yuan,of which 46 enterprises donated more than 100 million yuan.According to the blue book of Philanthropy: China charity development report(2018)released in September 2018,corporate donation exceeded 60% of the total charity donation of the society,and corporate donation remained the same It’s a major source of philanthropy.It can be seen that the initiative to fulfill social responsibility has undoubtedly become one of the important strategies for the survival and development of enterprises.Although many enterprises have realized the importance of fulfilling social responsibility for the long-term development,they also have brought social responsibility into their development strategies.However,in the increasingly severe economic environment and fierce market competition,more and more business managers want to know whether their corporate social responsibility initiatives are worthwhile.Therefore,this paper chooses the discretionary aspect of CSR ——charitable donation,and through empirical analysis to reflect how charitable donation affects the financial performance of enterprises.Existing literature has proved that there is a close relationship between corporate charitable donation and corporate performance.However,scholars have different opinions on whether corporate charitable donation can have a positive impact on corporate performance,and have not reached a unified conclusion.In previous studies on the impact of corporate philanthropic donations,researchers mainly focused on the direct relationship between corporate philanthropic donations and financial performance.This paper innovatively takes the level of innovation and employee responsibility of enterprises as the moderator variables.It is believed that corporate philanthropic donations play different roles in corporate performance under different corporate characteristics.Therefore,taking Shanghai and Shenzhen A-share listed companies as research samples,based on panel data from 2010 to 2017,this paper empirically analyses the impact of charitable donation on corporate performance of Chinese enterprises,and introduces enterprise innovation level and employee responsibility as moderating variables to verify the deep moderating effects of these two moderating variables on the model of "charitable donation—corporate performance".This paper attempts to expand the scope of current research on the economic consequences of charitable donations.In empirical analysis,this paper uses STATA14 for descriptive analysis,correlation analysis and regression analysis to verify the hypothesis and prove the reliability of the results through robustness test.The results show that corporate philanthropic donation has a positive correlation with corporate performance.The level of corporate innovation and corporate employee responsibility play a positive regulatory role in the model of "charitable donation—corporate performance",which agrees with the assumptions and conclusions of this paper.This paper proposes the moderating effect of enterprise innovation level and employee responsibility on the relationship between charitable donation and enterprise performance.The research results of incorporating innovative factors into "charitable donation-Corporate performance" can provide new ideas for innovative enterprises’ strategic positioning of donation behavior.For innovative enterprises,charitable donation may become an important strategic behavior to improve the competitiveness of enterprises.It is the basic social responsibility of enterprises to treat employees kindly.If enterprises engage in charitable donation at the expense of employees’ interests,it is easy to be regarded as a show of angling for praise.Taking corporate employee responsibility as a moderating variable of the "charitable donation-corporate performance" model can also confirm the importance of treating employees well,respecting their rights and development,and maintaining consistent performance of social responsibility.This paper will not only answer the question whether "kind-hearted" enterprises have more performance,but also supplement the relevant theories of employee responsibility and enterprise innovation.This will help enterprises to measure the value and role of charitable donation for enterprises,help enterprises to establish a good image,improve consumer recognition,thereby improving the competitive advantage of enterprises and help enterprises achieve long-term business objectives.