Political Connection,Charitable Donation And Corporate Resilience

Nowadays,in the environment of volatility,uncertainty,complexity and fuzziness(namely UVCA),the market competition is very fierce and the market environment changes rapidly.Enterprises are faced with various threats and uncertainties.Some enterprises are on the verge of bankruptcy.However,some enterprises can quickly adapt,recover and rebound.The main reason for the difference between the two lies in the organizational resilience developed by the latter in production and operation.Organizational resilience,as an ability to help enterprises resist risks,quickly recover and continue to operate in the process of coping with crises,is crucial to enterprises in an uncertain environment.China is still in the period of economic transition,and political connections can usually bring scarce resources and competitive advantages to enterprises.Political connection brings advantages in terms of financing convenience,tax preference,financial subsidies,etc.to enterprises,which can enhance the value of enterprises and help the production and operation of enterprises.It is very important to enhance organizational resilience.At the same time,charitable donation,as a part of corporate social responsibility,can establish a good image for enterprises and contribute to the society.Charitable donation by enterprises is not only a public welfare activity that selflessly gives back to the public,but also an activity that can benefit both government and enterprises.In the existing literature,the research on how to enhance organizational resilience is mostly carried out from the aspects of corporate social responsibility performance and management characteristics,and less from the aspect of political relevance.From the perspective of political relevance,this paper studies its impact on corporate resilience,and further studies the impact path of charitable donations on the relationship between political relevance and corporate resilience.Through the research,this paper draws the following conclusions:1.Political connection helps to improve the resilience of enterprises.Compared with the listed companies without political connection,the listed companies with political connection have stronger resilience.2.charitable donation plays an intermediary role.Enterprises with political connections can improve their resilience through active charitable donation.In the further analysis,this paper makes a sample regression analysis by distinguishing the property right nature,life cycle and industrial concentration of enterprises.The results show that in the sample group of state-owned enterprises,enterprises in mature stage and low industrial concentration,the positive correlation between political relevance and enterprise resilience is more significant.The innovations of this paper are as follows:first,in the previous research on enterprise resilience,enterprise resilience is usually considered as the emergency management level of enterprises after the crisis.This paper regards enterprise resilience as a kind of normalization ability in the daily production and operation process of enterprises,which can enhance the prediction ability,adaptability,recovery ability and sustainable operation ability of enterprises for crises and challenges.Secondly,this paper takes political relevance as the influencing factor of enterprise resilience,providing a new perspective on how to improve enterprise resilience.At the same time,this paper studies the mechanism of political relevance on enterprise resilience,and finds that charitable donation plays an intermediary role,enriching the existing research chain of enterprise resilience.