Research On The Impact Of Listed Company Charitable Donations On Company Value

In recent years,as an important way for enterprises to fulfill their corporate social responsibility,charitable donation has attracted more and more attention.The practice of charitable donation in foreign countries started early and the theoretical research system is relatively mature,while the practice and theory of corporate charitable donation in China are in the exploratory stage.However,with the gradual growth of enterprises in China,the scale and strength of corporate charitable donations have increased rapidly.Enterprises generally have special funds for charitable donations in their daily operations.In the burst of COVID-19 in 2020,many enterprises increased their assistance to society,highlighting the moral concepts of mutual help and mutual support.However,there is still no unified understanding of whether the charitable donation can increase the enterprise value,how much the amount of charitable donation has the best positive effect on the enterprise value,and whether the state-owned enterprises and non-state-owned enterprises have different effects on the enterprise value when they make charitable donation.Therefore,this paper uses the empirical research method to explore the relationship between charitable donation and corporate value of listed companies,aiming to guide enterprises to combine charitable donation with their own development strategy,and promote the sustainable development of enterprises and the harmonious progress of society.Based on the principal-agent theory,resource dependence theory and stakeholder theory,this paper puts forward the research hypothesis.According to the financial data of A-share listed companies in China from 2010 to 2019,the threshold panel model is used to study the relationship between charitable donation and enterprise value.This paper uses the ratio of corporate charitable donations to main business income to measure the relative amount of corporate donations,uses Tobin Q to measure corporate value,and uses the relative amount of corporate charitable donations as a threshold variable to study the impact of corporate charitable donations on corporate value.The results show that: the impact of charity relative donation on corporate value is not a simple linear relationship;with the increase of charity relative donation,the positive promoting effect will gradually decrease until it is negative.Generally speaking,the relationship between corporate philanthropy and corporate value is inverted U-shaped.Then we use the donation data of state-owned enterprises and non-state-owned enterprises to make regression,and find that the inverted U-shaped relationship between charitable donation and enterprise value of non-state-owned enterprises is more significant than that of state-owned enterprises.