The Research Of China’s Agricultural Listed Companies Social Donation And Economic Performance

Donating is the behavior that individuals or companies voluntarily give someone labor, money or material with whom they have no direct interests, aimed at doing charity. In the process of the development of enterprises in China, Yang Tuan and Shanghai Lu Hanlong had conducted a survey of corporate donation, and they found that in the past more than 90 percent of enterprises had made donations, this article has also been published in "Financial Times". In 2006, the Chinese Entrepreneurs Survey System carried out an investment and found that ninety percent of the companies had participated in social donation through different ways. However, when compared with the donations in America in 2007, China’s total social donations were only one percent of that of the United States, and China’s first ‘China Charity Donation Report’(2008) was published much later. After the 2008 Wenchuan earthquake happened, many domestic and foreign enterprises and individuals flocked to give cash, materials, and other donors, and the media covered it a lot. Although the earthquake had pasted many years, the amount of social contributions of domestic enterprises increased. In the 2013 report we found that the total donations received throughout the country in 2013 were about 98.942 billion yuan, increased by 20%; Among these donations, corporate donations increased significantly, and corporate donations accounted for about 69.67% of the total annual donations, being the absolute main force. All of these have benefited from the fact that society had put great importance in donations. However, most of the enterprises are in pursuit of economic interests, can charitable donation bring financial rewards? These are main concerns of business managers.Through reviewing some domestic and foreign studies on social donations and financial performance, this paper explored the relationship between performance and charitable donations, based on the theory of corporate social responsibility, stakeholder theory and strategic donations. On the base of many practical significance for the stakeholders of the enterprise and the guidance for the enterprise itself as well as social development, through combining normative research, comparative analysis and empirical research, the author hope to understand the main ideas of social donations and donor motivation of scholars from China as well as overseas, and to analyze the function between corporate donations and the performance and the intrinsic link between each other, and the author found out that social donations is influenced by the company’s internal business scale, the larger the firm is, the greater the possibility of donation is, the higher the rate of corporate assets and liabilities is, the smaller the possibility of donation is, and the corporate’s concept of social responsibility reflected the willingness of making corporate donations; the external factors of social donations are mainly industry factors. Agricultural listed companies are less likely to be studied by domestic scholars, so there is much significance in studying it, and the competitive environment and social concerns also determines whether a company will conduct social donations.Taking 127 agricultural listed companies from 2010 to 2014 as samples, the author gave five hypotheses, and selected business performance as dependent variable, and then choose advertising, donations for the explanatory variables, and also introduce firm size, ownership structure, ownership, sales growth, business growth opportunities to be the control variables to analyze the relationship between corporate donations, advertising and performance. By testing two models, the hypotheses accepted are: turnover of performance has a positive level of corporate donations and advertising spending to promote growth performance, business growth opportunities for positive impact on business performance, corporate debt levels exist adverse impact on the business performance.The hypotheses rejected are: Asset turnover have a positive effect on performance, state-owned enterprises donated leveling effect on the relationship between corporate performance and stronger advertising;.For the above test results, the author made analyses towards each hypothesis, and draw the appropriate conclusions, and made a few suggestions as follows, based on the problems reflected from the hypotheses. First, enterprises, whether it is state-owned or not, should effectively fulfill their social responsibilities, and they should not follow the trend, and they shall never make false donations. At the same time, enterprises should optimize the ownership structure to form a unified donations atmosphere. For external, the government should actively implement the relevant policies and offer guidance and strengthen the organization of charitable funds for effective management and supervision. The government should also improve the relevant provisions of the in-kind donations, and make it clear what method of valuation enterprises should use to value in-kind donations, and gradually open up the scope of the non-profit organization, breaking political barriers for non-profit charitable organization, and guide the public to conduct more social donation.