Research On The Impact Of Charitable Donations Of Private Enterprises On Obtaining Government Subsidies ——Based On The Mediating Effect Model Of Political Connections

As an important part of corporate social responsibility,charitable donation activities play an important role in improving the overall welfare of society,promoting mutual aid and friendship,helping the world and people,benevolent and loving others,and other Chinese fine charity cultural traditions.After the transformation of my country’s economic system,the status and development of the private economy under the socialist market economy with Chinese characteristics have been highly valued and supported by policies by the party and the government.The private economy has made great contributions to my country’s economic development.Become the main force.However,in the development of private enterprises,there are also some difficulties in development,problems in progress,and troubles in growth.Charitable donations are not a small expense and cost.In addition to "altruistic" motives,does private enterprise have "self-interested" motives? Does the charitable donation of private enterprises have political or economic purposes? Under the economic system dominated by the state-owned economy,many key economic resources are controlled by the government or monopolized by state-owned enterprises.How can private enterprises obtain more economic resources? Private enterprises do not have the natural nature of establishing political connections with the political system.What kind of private enterprises can be more favored by the government in financial subsidies? Does the political connection have any influence on the charitable donation behavior of private enterprises and the government monetary subsidy?This article selects my country’s A-share listed private companies from 2007 to 2018 as the research object.From the perspective of government-enterprise relations,combined with social exchange theory,resource dependence theory,and rent-seeking theory,it only explores whether political connections are based on self-interested motives.Part of the intermediary factors for private enterprises to obtain government subsidies through charitable donations.At the same time,it further elaborates the connotation of the political connection of private enterprises and the motivation of charitable donations,and the logical mechanism of government subsidies.The following conclusions are obtained through research:（1）Private enterprises will choose to use strategic charitable donations as a tool to build political connections with the government when the government’s public power is too large and the property rights system is not sound.Based on promotion pressure and political tasks,private enterprises that undertake more social responsibilities will be selected.Compared with private enterprises without charitable donations,private enterprises with charitable donations are easier to obtain monetary subsidies from the government in the same industry in the same year.（2）On the one hand,once a government official or a private entrepreneur with a political identity,the political network of private entrepreneurs is wider,and this network advantage can be enhanced in corporate charitable donations;on the other hand,private enterprises with no political background are performing social At the same time of responsibility,it can also obtain the "good boy" effect in front of the government and the public,which also improves the opportunities for private entrepreneurs to participate in politics to a certain extent.Compared with private enterprises without charitable donations,private enterprises with charitable donations are more likely to establish political connections with the political system.（3）Private enterprises use charitable donations,a high-margin behavior,to build political connections with the government as a bridge,so as to increase access to the cash resource of government monetary subsidies.Political connections play a part of the intermediary effect of private enterprises’ charitable donations on their obtaining government subsidies,that is,political connections are part of the intermediary influence factors for private enterprises to obtain government subsidies through charitable donations.The research conclusions of this article enrich the literature on the mechanism of political connection in the relationship between government and enterprise,as well as the charitable donation motives and behavioral consequences of Chinese private enterprises.At the same time,it also helps the government identify the motives of charitable donations of private enterprises,identify subsidies,and improve the efficiency of resource allocation.Reference basis,and has reference significance for the construction of positive political-business relations in Chinese society under the transitional economy.