Research On Enterprise Donation On Financial Perspective

With the constant progress of social civilization, the philanthropy that reflects the social responsibility and public awareness has gained more and more public attentions.As main socio-economic activities Enterprises play an important part in pubic charity,and enterprise charitable giving behavior has become a focus of media attention. Under the incentives from Social conditions and behavioral effects, rational extent of domestic enterprises donation gradually increase, but the overall level needs to be improved.This article uses literature analysis, induction and deduction, empirical studies and other methods to analyse donor motivation and influencing factors from the financial, political, geographical and cultural point of view, and clarify the mechanism of corporate giving, as well as financial and market value analysis. Combined with the macro-environment,this article fully explores the donation from corporate finance, in order to better guide the enterprises to participate in the donation with scientific and rational attitude and norms, and promote positive interaction between corporate donations and enterprise development, to achieve the further development of China’s public charity.The article used theory and data to prove the following conclusions:Firstly, corporate donation was influenced by corporate financial conditions, political systems, industry, geographical, cultural and other factors. In financial respect, cash flows were positively correlated with corporate donation, and liabilities, ownership concentration had negative correlation with donation amount,while profits, executive incentive did not pass the significance test;In terms of political system, the correlation between corporate income tax rate and donation is positive, private enterprise had more enthusiasm than the state-owned enterprises to donate; in other factors, different industries, defferent regions, economic levels and cultures could led to donation differences.Secondly,the relationship between corporate donation and financial performances was significantly positive, which indirectly indicated that current listed companies in China had increasingly rational attitude to public welfare charitable acts.Donation behavior is made not only to fulfill the social responsibility, but also to gain the enterprises interests in financial aspects.Thirdly, the donation had a significant positive effect to enhance the enterprise value.Ongoing donations under superior financial performance could bring a greater degree of improvement to corporate value.The main innovations of this article are:1.Considered tax, geographical and cultural factors impact on corporate giving behaviors.2.On the basis of the impact of Donation on corporate finance, this article further researched on the impact of corporate giving on corporate value.3.Added the thinking of donation persistence when analysing donation effect,and proved persistence was in favor of showing effects of rational donation by means of sample data in consecutive several years.