Charity Legislation,Public Welfare Donation And Corporate Value Creation

The report of the 19 th National Congress points out that the main contradictions in our society have been transformed into the contradiction between the people’s growing need for a better life and the unbalanced and inadequate development,and has repeatedly stressed that distribution should focus on the idea of equity.In order to further promote China’s economic development,we need to be alert to the excessive expansion of income gap in the field of social distribution,and even polarization.In this context,as one of the third distribution of important ways,public welfare charity has become the focus of society,providing a new perspective for regulating the income distribution gap.And enterprises play an important role in the social and economic system,people pay more and more attention to corporate social responsibility behavior.In addition to its influence on society,does corporate donation has an impact on the creation of enterprise value? The Charity Law,as an important law regulating charitable behavior,has changed the legal environment of charity,will its promulgation affect the above-mentioned relationship? Is there any difference in the institutional effect of the Charity Law under the competition of different industries?In order to explore the above problems,on the basis of previous research,this paper takes public welfare donation as the starting point,first,on the basis of expounding the background and significance of the research,reviews the relevant research literature and comments,and then analyzes and combs the relevant important concepts and core theoretical basis,and puts forward two important assumptions.In the empirical analysis part,this paper selects the 2010-2018 Shanghai-Shenzhen A-share listed companies as the initial sample,and the PSM match to get the final research sample.First,the OLS regression model is used to test the impact of corporate public welfare donation behavior on the creation of enterprise value,and then,the legal effect of charitable legislation on the above-mentioned effects is tested empirically by using the double differential propensity score matching method(PSM-DID),and the competition factors of the industry are further explored on the Charity Law Implementation is the impact of the creation of enterprise value differences.The results show that the public welfare donation behavior significantly promotes the creation of enterprise value,the advantages of donation behavior become more prominent after the implementation of the Charity Law,which further enhances the ability of enterprise value creation,and whether the enterprise is in a high-competitive industry or a lowcompetition industry,the Charity Law has a significant positive effect on the creation of enterprise value.This paper holds that the Charity Law has influenced and even changed the corporate social responsibility behavior through legal constraints and incentives,thus promoting the creation of enterprise value,and formed an effective transmission mechanism: charitable legislation—public welfare donation—corporate value creation.Finally,the corresponding suggestions are put forward for the improvement of the enterprise’s public welfare donation and charity law and further improve the enterprise’s value creation ability.Based on the new perspective of charity legislation,this paper examines the mechanism of legal system affecting the creation of enterprise value,and expands the traditional view of the analysis of enterprise value creation drivers,thus enriching the existing legal and financial research literature.