Charitable Donation,Executive Incentive And Corporate Total Factor Productivity

At present,China’s economy has changed from a high-speed growth stage to a high-quality development stage,and improving total factor productivity is an inevitable requirement to promote high-quality economic development.The report of the 19 th National Congress of the Communist Party of China clearly pointed out that the strategic goal of China’s economic development is to improve the total factor productivity on the basis of quality change,efficiency change and power change.Therefore,it is particularly necessary to identify the influencing factors of total factor productivity and explore ways to improve total factor productivity.At present,the research on the influencing factors of total factor productivity is mainly carried out from macro and micro aspects.Macro-level research results are abundant,and some studies have discussed the influence of economic openness,environmental regulation,government regulation and other factors on total factor productivity.However,the foundation of high-quality economic development lies in enterprises.However,through literature review,it is found that the research results of total factor productivity at the micro-enterprise level are relatively few.These papers mainly discussed the influence of salary gap,R&D investment,human capital,ownership structure,institutional investors,corporate social responsibility,executive background characteristics and so on on corporate total factor productivity.However,there is little literature about corporate charitable donation.Charity donation is an important part of corporate social responsibility,and it has become an important way to enhance the core competitiveness of enterprises.However,total factor productivity,as an important dimension to measure the competitiveness of enterprises and an important focus to change the mode of economic development,lacks an explanation for corporate charity donation from the perspective of corporate total factor productivity.According to the agency theory,incentive mechanism is an important tool to alleviate the agency problem.In order to reduce agency costs,it is necessary for enterprises to implement effective incentive mechanism to reduce the motivation of executives to use charitable donation to seek personal benefits,thus contributing to the improvement of long-term productivity of enterprises,that is,the strength of charitable donations’ contribution to total factor productivity will be different due to the differences in incentive mechanism of executives.This paper selects China’s A-share listed companies from 2010 to 2019 as research samples,based on financing constraint theory and principal-agent theory,discusses the influence of charitable donation on corporate total factor productivity,and tests the heterogeneous influence of different types of charitable donation on corporate total factor productivity.On this basis,it tests the moderating effect of equity incentives and promotion incentives in executive incentive mechanism on the relationship between charitable donations and corporate total factor productivity,and further empirically analyzes the action path of charitable donations on enterprise total factor productivity.The findings of this paper are as follows:(1)Charity donation can improve corporate total factor productivity.(2)Compared with non-strategic donation,strategic donation is more helpful to improve corporate total factor productivity.(3)Equity incentive has a negative moderating effect on the relationship between charitable donation and corporate total factor productivity.(4)Promotion incentive has a positive regulating effect on the relationship between charitable donation and corporate total factor productivity.(5)Through further verification of the influence mechanism,it is found that charitable donation can improve corporate total factor productivity by alleviating the financing constraints.The main significance of this study lies in: Firstly,it will help enterprises to realize the positive significance of charitable donation,urge enterprises to pay more attention to their social responsibilities,and then mobilize the enthusiasm of enterprises to make charitable donation.Secondly,it will help the management of enterprises to understand the conditions under which charitable donation plays a role in corporate total factor productivity,and promote enterprises to actively create an excellent environment for enterprises to promote the growth of total factor productivity by means of charitable donation.Thirdly,it is helpful for enterprises to formulate reasonable incentive measures according to the needs of internal and external environment,especially to play the promotion role of promotion incentives,so as to realize the sustainable development of enterprises.The main contributions of this paper are as follows: Firstly,from the perspective of charitable donation,the research on corporate total factor productivity has been expanded and deepened.Secondly,it provides a new explanation for corporate charitable donation from the perspective of total factor productivity.Thirdly,it has developed the research on the working conditions under which charitable donation affects corporate total factor productivity.Fourthly,this paper analyzes the mechanism of charitable donation affecting corporate total factor productivity,thus uncovering the "black box" of charitable donation affecting corporate total factor productivity.