The Influence Of Corporate Charity Donation On Its Financial Performance

Enterprises bear important social responsibilities in the process of social development.In recent years,with the increasing frequency of global natural disasters and major diseases,the demand for corporate charitable donations has further increased.Corporate charitable donation has a long history of development abroad,but it started relatively late in China.In the early days,most enterprises in China lacked the sense of social responsibility,and corporate charitable donations were often regarded as a task enforced by the government.Accordingly,compared with western developed countries,there are fewer researches on corporate charitable donations in China,and the research contents mainly focus on the theoretical aspects such as the motivation of corporate charitable donations,the influencing factors of corporate charitable donations,and the effects of corporate charitable donations.In this paper,motivated by the real estate industry as research cases,and grey relational analysis is used to analyze the mechanism and influence path of corporate donation behavior on corporate financial performance,so as to provide some guidance for corporate charitable donation behavior.The research content of this paper mainly includes five parts: the first part is the introduction,which mainly expounds the basic contents such as research background,purpose,significance,content and method,and clarifies the basic framework of the research;The second part is the review and summary of related concepts and theoretical basis.Firstly,it introduces related concepts such as corporate charitable donation and corporate financial performance,and then summarizes the research on corporate charitable donation and financial performance at home and abroad.The third part mainly introduces the measurement methods of corporate charitable donations and financial performance;The fourth part is a case study,taking real estate companies as research cases.Firstly,the industry profile is briefly introduced.Secondly,the relationship between charitable donations and financial performance of real estate companies is quantitatively analyzed through data collection and model establishment.The fifth part is the research conclusion and policy recommendations.Firstly,the research results are briefly summarized,and then combined with the results of empirical research,some suggestions on charitable donations are put forward for real estate companies.The main conclusions of this study are as follows:(1)The results of empirical analysis show that the donation amount has a high correlation with the real estate company's return on the profitability ?operating ability,solvency and growth ability;(2)In order to further play the role of charitable donations in the financial performance of enterprises,real estate companies can take the following measures: to promote charitable donations to a strategic level;Reasonable distribution of charitable funds;Increase the disclosure of charitable information.