Donations,Industry Competition And Corporate Value

With the development of the global corporate social responsibility concept,the call for listed companies to fulfill their social responsibilities is getting higher and higher.As far as charitable donations is concerned,as an important part of demonstrating corporate social responsibility,it is increasingly causing theoretical and practical circles's concern.Although corporate philanthropy with pure altruism cannot be ruled out,does a charitable donation conflict with the company's economic goals for a rational,profit-seeking company?How to combine corporate social responsibility such as charitable donation with the competitive advantages of different enterprises and the external environment,and create value added for enterprises,is of great significance to promote the sustainable development of listed companies in China.The literature has carried out a series of studies on the influencing factors of corporate charitable donations and the economic consequences of charitable donations.However,they all focus on the micro level(intra-enterprise characteristics)and macro level(external institutional environment,etc.)of enterprises.The impact of factors on corporate willingness and donation levels and the regulatory effects of these factors on charitable giving and corporate value,while ignoring industry-level factors that may affect corporate charitable donations.After summarizing,analyzing and summarizing the previous research results,based on stakeholder theory and strategic charitable donation theory,this paper takes the 2008-2017 Shanghai-Shenzhen A-share listed company as the research object and uses Heckman two-stage regression model to study charitable donation.The impact on corporate value and the in-depth perspective of the economic consequences of corporate charitable donations.The study found that the level of charitable donations is positively affecting corporate value,and the weaker the degree of competition in the industry,the more effective the role of charitable donations cen be.Finally,according to the regression results,the countermeasures and suggestions are provided from both the enterprise and the government.The structure of this paper is organized as follows:The first part,introduction.Firstly,the research background and research significance of this paper are explained.Secondly,the related concepts such as corporate charitable donation and enterprise value are defined.Then,the research content and research methods of this paper are expounded.Finally,the possible innovations are summarized.The second part is a literature review.Mainly combing and summarizing the following aspects of the literature:the impact of charitable donations on corporate value and the relationship between industry competition and the value effect of charitable donations,etc.,briefly reviews the existing literature and analyzes the writing value of this paper.The third part,theoretical analysis and research hypothesis.This chapter first introduces the basic theory of this paper,including stakeholder theory and strategic charitable donation theory.On the basis of these theories,the impact of charitable giving on corporate value and the regulatory effect of industry competition on charitable donations and corporate value are analyzed.Finally,the research hypothesis of this paper is proposed.The fourth part,research design and empirical results analysis.First,the financial data of the Shanghai-Shenzhen A-share listed companies from 2008 to 2017 were selected from the CSMAR and RESSET databases as research samples,and the CSRC industry classification method announced in 2012 was used to define the relevant variables.Furthermore,the value of the enterprise is selected as the explanatory variable,measured by the Tobin Q value;the relative level of charitable donation is the explanatory variable,expressed as the percentage of charitable donation and the main business income;the industry competition is the external adjustment variable,using Herfindahl The index HHI is used to represent;and the asset-liability ratio,enterprise growth opportunities,enterprise risks,and firm size are selected as control variables to construct a regression model.Then,descriptive statistics and correlation analysis were performed on the variables,and the Heckman two-stage model was used for empirical analysis.The regression results show that there is a significant positive correlation between the level of corporate charitable donation and the value of the enterprise at 1%;the degree of industry competition has a strengthening effect on the relationship between corporate charitable donation level and corporate value,that is,the larger the HHI,the weaker the industry competition.The smaller the business risk,the larger the profit margin,the sufficient resources and energy to design and operate the charity project,and it is easy to get the recognition of the stakeholders.The more effective the charitable donation can enhance the value of the enterprise.Finally,the robustness test is carried out from two aspects.One is the replacement of the charitable donation level,and the other is the elimination of the abnormal year data of 2008.The results are basically consistent with the original regression results.The fifth part,conclusions and recommendations.Combining the theoretical analysis and empirical research of the previous chapters,the conclusions of this paper are summarized:under other conditions,the higher the level of corporate charitable donation,the greater the value of the enterprise;the weaker the competition in the industry,the higher the value of charitable donations The more effective the role can be.Further,from the two aspects of the enterprise and the government,the countermeasures and suggestions of this paper are put forward to realize the continuity and effectiveness of charitable donation.Finally,the paper analyzes and summarizes the possible research deficiencies in this paper,and looks forward to the possible future writing directions.Compared with the existing research,the innovation of this paper:the introduction of industry competition as a regulatory variable,to explore whether the degree of industry competition will have an impact on the relationship between charitable donation and corporate value.In the research method,the Heckman two-stage model was selected to control the deviations caused by the donated enterprises.The further research direction of this paper is to start from the other industry-level factors such as industry leaders and more comprehensively examine the relationship between charitable donations and corporate value under industry constraints.