Research On The Motivation And Value Effect Of Charitable Donation Of Enterprises With Heterogeneous Performance

Since the reform and opening up,China’s philanthropy has developed steadily and played an important role in reducing wealth inequality,ensuring social stability and maintaining social vitality.The development of philanthropy is an effective measure to achieve common prosperity and promote three distribution,and enterprise donation is the core and main force of charitable donation.Relative performance is a prerequisite for enterprises to make charitable donation decisions.Effective and sustainable charitable donation is usually based on good operating performance and sufficient and stable cash flow.In reality,there is an abnormal phenomenon that some enterprises with poor relative performance make large charitable donations.Therefore,when studying the relationship between charitable donation and enterprise value,we need to take relative performance into account.The difference of relative performance makes the enterprise’s charitable donation motivation and behavior different.This thesis focuses on two cases of country garden and Taihe Group.From the perspective of relative performance,this thesis fully analyzes the motivation of enterprise charitable donation under different performance states from the aspects of altruism motivation,economic rationality motivation,political relevance motivation and management utility motivation,and analyzes its impact on enterprise value effect from the Perspective of motivation.Through the comparison of two cases,this thesis discusses the differences of charitable donation motivation and its impact on enterprise value effect under different behavior characteristics of performance heterogeneous enterprises.Through theoretical analysis and case study,the following conclusions are drawn:(1)from the motivation of charitable donation,the stable operating performance and cash flow of highperformance enterprises enable enterprises to have sufficient redundant resources to provide enterprises with more altruistic choices,so high-performance enterprises reflect stronger altruistic motivation;Poor performing enterprises lack sufficient redundant resources and energy,and their controllers and executives are more inclined to seek private interests for themselves and related parties,reflecting stronger management utility motivation;High performing enterprises and poor performing enterprises have differentiated economic rational motives.High performing enterprises are more for improving reputation and building good relations with stakeholders,while poor performing enterprises also have stronger motives to obtain reputation protection and cover up bad performance in addition to the above motives;High performing and low performing enterprises have political motivation.(2)From the value effect of charitable donation,the short-term market response of high performing enterprises and poor performing enterprises shows the opposite trend.The charitable donation of high performing enterprises shows a positive short-term market response,and the positive response of donation based on strategic motivation is stronger than that based on pure altruistic motivation;Enterprises with poor performance are on the contrary.From the perspective of long-term value effect,charitable donation can have a positive value effect on enterprises with better performance,and a negative value effect on enterprises with poor performance.