| Along with the rise and development of the concept of corporate social responsibility,there is a growing call for China’s listed companies to assume social responsibility and make charitable donations.In recent years,companies have responded positively to national policies by donating to disaster relief,but these relief donations are episodic and it can be difficult to achieve a sustained market response.At the same time,in order to be able to meet the expectations and requirements of different stakeholders,many companies have strategically managed their giving activities,turning episodic giving behaviors into ongoing giving strategies.It thus appears that the corporate charitable giving process involves complex and diverse sequential patterns of giving behavior;however,traditional theoretical models of charitable giving treat giving activities as static and simplify the reality of a highly complex giving process.This paper re-examines the dynamic complexity of charitable giving and explores the strategic implications of sustained corporate charitable giving.The level of corporate risk-taking is of great importance for the sustainable development of the company,the accumulation of social capital and the increase of corporate value.It is closely related to the company’s business strategy and is an issue that deserves attention in the company’s long-term development.Therefore,companies must make investment decisions carefully and maintain a reasonable level of risk-taking.On this basis,it is considered that ongoing charitable giving is a strategic option for companies to manage their giving patterns,while corporate risk-taking is a strategic choice for managerial autonomy.Whether corporate sustained charitable giving has positive effects on the future development of the firm and impacts on corporate micro governance has not been clearly articulated so far.Therefore,this paper attempts to analyze the relationship between corporate sustained charitable giving and the level of corporate risk-taking to provide direction for promoting corporate development.Based on strategic philanthropy theory,resource dependence theory and rent-seeking theory,this paper explores whether corporate sustained charitable giving can improve the level of corporate risk-taking,and proposes two impact paths,financing constraints and government subsidies,to empirically test the effect of corporate sustained charitable giving on the level of risk-taking and related mechanisms,using a sample of A-share listed companies in Shenzhen and Shanghai from 2003 to 2021 in China.We also analyze the marketization process and performance pressure,and conclude the following: First,sustained philanthropic giving helps to increase the level of corporate risk-taking.The higher the level of sustained charitable giving,the higher the risk-taking level of the firm.Second,the mechanism study finds that financing constraints and government subsidies are the mediating variables in the relationship between corporate sustained charitable giving and corporate risk-taking levels.Finally,it is further found that compared with enterprises with high marketization process,the implementation of continuous charitable donations in enterprises with low marketization process has a more obvious effect on improving the risk bearing level of enterprises.The effect of sustained charitable giving in firms with low performance pressure on the level of corporate risk-taking is more significant than that in firms with high performance pressure.Compared to previous studies,this paper discusses sustained charitable giving and risk-taking levels,showing that companies should take a strategic philanthropic view as part of their strategic management and make appropriate long-term donations to charitable giving causes,which not only improve their risk-taking capacity,but also contribute to social progress and development,and achieve a win-win situation. |
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