An Empirical Study On The Relationship Between Social Donation And Financial Performance Of Listed And Retail Listed Companies In Shanghai And Shenzhen

Enterprises are faced with the increasingly competitive competition in the times of global economic integration, factors that affecting business financial performance are also becoming increasingly complex.Along with the theory of enterprise social responsibility has been widely accepted and the vigorous development of the social donation, the relationship between enterprise social donations and enterprise performance has attracted attentions of the theory researchers and enterprise managers.In this paper, on the basis of normative research, we use wholesale and retail trade industry listed companies in Shanghai and Shenzhen stock exchange as the research object, and select 50 companies has donated during 2007 to 2012 as the sample,.The enterprise in the selected period less than three years of donations is defined as a random, which more than or equal to three years of donation is defined as a continuous donation.By using the empirical method of panel unit root tests, panel cointegration relationship between inspection, panel VAR, panel VAR model impulse response analysis and variance decomposition panel VAR model, we study the relationship between the social donation and enterprise financial performance,and combine the results of empirical research with relevant theory to analyze the relationship between the formation of internal driving elements and mechanism. The empirical results show that both continuous donations and random donations, there is a significant relationship between enterprise financial performance and social donation;the positive impact of enterprise financial performance for social donations is greater than enterprise social donation for the enterprise financial performance,and this kind of impact on the enterprise of continuous donations is greater than that of random donations.Considering the relational mechanism of interaction and promote each other,we think that continuous donations of enterprise is based on its own economic ability, it will be conducive to improve the enterprise’s financial performance and beneficial for the long-term development of the enterprise.