Donation,Governance Structure And Private Enterprises’ Financing Ability

The financing difficulty of private enterprises is a worldwide problem,and it is especially urgent in China.Helping private enterprises solve the difficulty and high cost of financing can stimulate the vitality of China’s market economy.At the same time,in recent years,the awareness of social responsibility of private enterprises is gradually improving.Charitable donation is a strategic way for enterprises to fulfill their social responsibilities.Linking charitable donation with the financing of private enterprises may be a new breakthrough to solve the financing problem of private enterprises.In addition,the governance structure of an enterprise is the fundamental institutional arrangement within the enterprise,and it is the direct constraint on the behavior of various interest subjects within the enterprise.Corporate governance structure will greatly affect the formulation and implementation of corporate charitable donation behavior.Therefore,this paper,starting from the governance structure of private enterprises,examines the relationship between charitable donation and financing capacity of private enterprises.This paper studies the relationship among the charitable donation,governance structure and financing capacity of private enterprises.This paper not only studies the influence of charitable donation and governance structure on the financing ability of private enterprises,but also studies the regulating effect of governance structure.Under the condition of perfect governance structure,enterprises can be promoted to actively participate in charitable donation,improve the debt financing ability of private enterprises and finally generate a virtuous cycle.The research sample in this paper comes from the "11th National Private Enterprise Survey",which was conducted by the Private Enterprise Research Group in 2014.In order to study the relationship between charitable donation,governance structure and financing capacity of private enterprises,this paper first builds a model based on the assumptions proposed.Then,descriptive statistical analysis,correlation analysis and regression test were conducted on the important variables in the research samples.The results show that the amount of charitable donations and the completeness of governance structure have a significant positive correlation with the loan amount of commercial bank loads of private enterprises.The interaction term between the amount of charitable donations and the completeness of governance structure has a significant positive correlation with the amount of commercial bank loans of private enterprises.This indicates that the more complete the governance structure of private enterprises is,the more promoting effect of charitable donations on commercial bank loans of private enterprises will be.This study reveals part of the law of private enterprises’ participation in charitable donation.In order to guide private enterprises to take the initiative to fulfill their social responsibility obligations and improve their governance structure,this paper puts forward some suggestions.This study has a strong theoretical and practical significance for guiding private enterprises out of the financing dilemma and promoting a sustainable economy environment.