Research On The Impact Of Litigation Risks On Corporate Charitable Donations

In recent years,the construction of the rule of law in China is gradually improving,and litigation risks are gradually becoming one of the important external factors affecting the survival and development of enterprises,which will pose a major threat to the operation and development of enterprises.At the same time,charitable donations are a This important measure is accepted by more and more companies,because it can be used as a means to get rid of the negative crisis,accumulate moral capital for the company,cover up its adverse effects when the company encounters negative events,and maintain the good reputation of the company And image,so whether litigation risk will motivate companies to make charitable donations is a more important research question.Based on empirical research on the relevant data of Shanghai and Shenzhen A-share listed companies from 2014 to 2018,this paper analyzes the impact of litigation risks on the company’s charitable donation behavior and the situation is differences in the different litigation of status and different types of litigation.The research results show that: litigation risk has a positive impact on corporate charitable donations,and the greater the litigation risk,the larger the donation amount;further research shows that when companies are in different litigation positions and types of litigation,their impacts are also different,compared to the plaintiff enterprise,the litigation risk of the defendant enterprise has a greater impact on charitable donations,compared with the non-economic litigation enterprises,the economic litigation enterprises have a greater impact on their charitable donations.This article considers that corporate charitable donations have “tool” self-interest motives,which can conceal the actual or potential adverse impact of litigation on companies,and the accumulation of moral capital can significantly reduce or even eliminate the negative impact of litigation risks.Enterprises maintain a good image and reputation.This research will help to deepen the understanding of corporate charitable donation behavior and provide new ideas for market regulators’ regulatory behavior.