Research On The Relationship Between Corporate Daily Donation And Financial Performance

With the accelerating process of economic globalization, the increasingly fierce competition in the market, more and more limitations appear in the traditional production elements that enhance the competitive power of enterprise the enterprises must look for new development strategy. In this process, as an effective way to improve corporate competitive environment, corporate donation is becoming the focus of research. Theoretically, corporate daily donation is a persistent investment, through setting up the enterprise image, getting the loyalty of customer, increasing enterprise social capital, improving the enterprise competition environment, to achieve the purpose of promoting enterprise financial performance. However, whether the corporate daily donation can improve financial performance in China? Whether it can achieve the expected effect? This is worth to be discussed. In this context, this paper conducts a study on the relationship between the enterprise daily donation and financial performance.This paper is composed of five parts. The first part is the introduction of background, significance and methods, summarizing the main view of researchers. In the second part of this paper, the correlation of daily donation and companies, financial performance is described using Stakeholder、cost and income、the utility and Strategic management theory. The third part is a general analysis, based on the related theory, analysis the daily donation how to influence financing performance. Then, this paper selects2006-2010annual report data as sample, using accounting indicators to measure the financial performance of the enterprise. The last part is the conclusion of this paper, number of recommendations for the conclusions and the direction for further research.Innovations and features in this article are:1. Approach Innovative. Wen chuan earthquake caused the "blowout" of corporate donation, the domestic scholars pay close attention to the enterprise, catastrophic donation, and the donation and performance have been extensively studied, resulting in a large number of academic achievement. However few studies focus on the enterprise daily donations behavior. On the basis of previous studies, with daily contribution as visual angle, research the correction of enterprise daily donations and financial performance, and based on the consumer expectation perspective, according to industry division method of Shan Wei, further testing the daily donations and financial performance between direct contacting consumer industries and indirect contacting consumer industries.2. Samples Innovation. At present the empirical samples mostly selected2008donation data, a few chose three years data. This paper choice five years donation data from2006to2010which is beneficial to the preciseness of the result.