Research On The Impact Of Corporate Charitable Donations On Surplus Sustainability

The Fourth Plenary Session of the 19 th CPC Central Committee clearly put forward the need to pay due attention to the important position of the third distribution in the national income distribution system,and actively promote the healthy development of charitable giving and other social welfare undertakings.2021,the 10 th meeting conducted by the Central Finance and Economics Commission emphasized the need to accelerate the construction of mechanisms to promote the realization of the role of the third distribution,and thus solidly promote the realization of common wealth.As the country’s emphasis on charitable giving deepens,companies are realizing the importance of participating in charitable giving for their development.As the most direct reflection of a company’s sustainability,the sustainability of earnings not only reflects the company’s future profitability,but also the expectations of the company’s management,creditors,investors,and other stakeholders about the company’s future sustainability.So,can companies’ active participation in charitable giving lead to sustainable surplus improvement? On the one hand,the study of this issue can provide suggestions for corporate management to improve the level of surplus sustainability,and on the other hand,it can also contribute to the development of China’s philanthropy,maintain the fair allocation of social resources,and contribute to the realization of common wealth.Based on this,this paper investigates the impact of corporate charitable giving on surplus persistence from a stakeholder perspective,combining the theoretical foundations of information asymmetry theory and corporate reputation theory,and analyzes the mediating effect of financing constraints in the relationship between charitable giving and surplus persistence.In further analysis,the moderating effects of macro-environmental differences in economic policy uncertainty and micro-firm heterogeneity in terms of firm growth and equity nature on the relationship between corporate charitable giving and surplus persistence are explored separately.On this basis,this paper selects relevant data of A-share listed companies in Shanghai and Shenzhen from 2009 to 2020,and empirically analyzes the five research hypotheses proposed in this paper by constructing a model.The results show that corporate charitable giving contributes to the improvement of surplus persistence,and the alleviation of financing constraints plays a part in the mediating effect.Economic policy uncertainty inhibits the positive relationship between charitable giving and surplus sustainability;the positive relationship is more pronounced in firms with better growth;and the effect of charitable giving on surplus sustainability is stronger in state-owned enterprises.Based on the above research findings,this paper puts forward policy recommendations from two perspectives: enterprise and government.From the perspective of enterprises,capable management should pay attention to social responsibility,actively participate in charitable donations,and thus help enterprises improve the financing environment;meanwhile,they should balance the interests of all parties in the stakeholder chain to win sustainable development for enterprises;in addition,they should actively respond to the national policy call to play a good role in the third distribution of enterprises,so as to promote the fair distribution of social wealth and achieve In addition,we should actively respond to the national policy call to play a good role in the third distribution of enterprises,so as to promote the fair distribution of social wealth and achieve common prosperity.From the government’s perspective,the government needs to appropriately relax the existing preferential conditions for charitable donations to stimulate the willingness and strength of enterprises to actively participate in charitable donations;it should also focus on optimizing the financing environment for enterprises and broadening their financing channels;in addition,the government needs to improve the construction of relevant infrastructure and strengthen the publicity for charitable causes.