Charitable Donations,Policy Uncertainty And Debt Financing

Based on the data of A-share listed private enterprises from 2010 to 2017,this paper empirically analyzes whether charitable donation can help private enterprises obtain financing convenience.In order to further explore how charitable donations affect corporate debt financing,this paper continues to explore whether charitable donations still have a positive impact on debt financing in the face of financing constraints brought by policy uncertainty.It is found that the political connections established through charitable donations can help enterprises obtain resource support.It shows that charitable donation of private enterprises is a kind of strategic means of enterprises.While fulfilling social responsibility,it can also help enterprises obtain financing convenience.This paper creatively discusses charitable donation,policy uncertainty and debt financing,and explores the impact of charitable donation on debt financing when the local government changes.Through empirical analysis,this paper finds that when the financing constraints brought by policy uncertainty,private enterprises will re-establish the relationship with the government through charitable donation,so as to obtain more financing convenience From the logic of "government change-charitable donation-political connection-financing convenience",this logic can more fully demonstrate that corporate philanthropy can bring political convenience.The results show that charitable donation can help private enterprises obtain more debt financing.At the same time,private enterprises in the face of policy uncertainty brought about by financing constraints,will be more active in charitable donations,in order to obtain financing convenience.It shows that charitable donation can help enterprises to build political connections and achieve mutual benefit and win-win situation among various stakeholders.