Research On The Relationship Between Private Enterprises’ Charitable Donations And Financial Performance

In recent years, more and more entrepreneurs are very focused on the characterization of their community. In committing to corporate social responsibility and philanthropic career, they also have made great progress. As an important part of business ideas, and also as an important measure of private enterprises to create a beneficial social and political environment for the economic development, the corporate charitable giving has become a common social behavior gradually. In china, charitable donation, as “the third distribution” of the national income, is a kind of willing behavior. So the role it plays is much more important than the market and government regulation. Based on this, we need to research this behavior in depth. This will be help to further understand the effect of charitable donation on the enterprises, and promote the sustainable development of private listed companies.In this paper, we take the private listing enterprises as research object to discuss the relevance of charitable donations and corporate financial performance. Through collecting and summarizing the related literature on philanthropy and corporate financial performance, as well as tracking the cutting-edge dynamic, we tested the relevance of them from the perspective of corporate life cycle. The main research work and content of this paper are focused on two hands. On one hand, based on the stakeholder theory, agency theory, and the life cycle theory, we systematic descript the impact of corporate charitable donations on financial performance and proposed a series of hypothesis with some factors. On the other hand, in this paper, we provided detailed and comprehensive data for empirical research through annual corporate reports, corporate social responsibility report(CSR), GTA database and so on. Then, we tested the hypotheses we proposed and the measurement model we established by Excel 2007 and EVIEWS 6.0. Overall, the research of charitable giving in our country is not mature enough. Therefore, to find out the factors effecting corporate lifecycle and the corporate charitable donations mechanism in different ways are our future research direction, and they are worthy of further study.