Research On The Impact Of Charitable Giving On Corporate Value

Charitable donation is an important part of corporate social responsibility.On the one hand,it creates a huge reputation wealth for the enterprise,which is quickly known to the public.On the other hand,it also makes a large amount of cash flow out of the enterprise,increasing operating costs.In recent years,more and more enterprises actively participate in charity and take social responsibility in the form of charitable donations.So why are enterprises keen on charitable donation activities contrary to business objectives? This thesis takes the enterprise value as the starting point to study the influence of charitable donation on it.In addition,there is little literature on the relationship between charitable donation and audit quality.Although charitable donation has the function of attracting enterprise stakeholders,there is information asymmetry between enterprises and stakeholders,and the signal retransmission function of high-quality external audit can effectively increase the credibility of enterprise information.Therefore,enterprises willing to bear the responsibility of charitable donation may be more willing to accept higher quality audit.Then,there may be a certain relationship between charitable donation and audit quality.In addition,higher quality audit has the function of corporate governance.As an external supervisor of the enterprise,it can alleviate the agency conflicts and protect the value of the enterprise.Therefore,audit quality may also have an impact on the relationship between charitable donations and corporate value.In view of the above three problems,this thesis has carried out the research.In this thesis,the fixed effect model is used to test the relationship among charitable donation,corporate value and audit quality.The conclusions are as follows: charitable donation has a positive and significant impact on enterprise value;Charitable donation has a positive and significant impact on audit quality;High quality audit has a positive impact on the positive relationship between charitable donation and enterprise value.In the further study,we try to use the inefficient investment model to calculate the idea of over investment,and get the reasonable level and excess level of charitable donation.We find that charitable donation plays a significant positive role in promoting enterprise value at a reasonable level,and has a significant negative impact on enterprise value at an excess level.That is to say,charitable donation can have a positive impact on the enterprise value only within the scope of the enterprise's economic tolerance,while charitable donation beyond the scope of the enterprise's economic tolerance can not have a positive impact on the enterprise value.Finally,In view of the research conclusion,this thesis puts forward the corresponding suggestions and Countermeasures for the enterprises and the government.Enterprises:(1)We should change our thinking and attach importance to charitable donation.(2)We should take the initiative to disclose social responsibility information including charitable donation.(3)Charitable donations should be combined with their own business situation,reasonable and moderate donations.(4)Strengthen external audit supervision and improve corporate governance.For the government:(1)Strengthen the sense of corporate responsibility and change the role of the government.(2)We should standardize the management of audit institutions,improve the access threshold of audit industry,and endow external audit with new connotation.