Major Shareholder Control,Public Welfare Donation And Earing Persistence

After the outbreak of the coronavirus disease in 2020,people across the country are determined to fight the coronavirus disease.The whole society have made donations to Wuhan.The level of public participation has never been higher.It can be seen that with the improvement of living standards,people pay more attention to spiritual needs.Enterprises not only pay attention to the realization of their own economic interests,but also take into account the commitment of social responsibilities.China Charity Reports’ data shows that enterprises are the main force in social donations.The traditional virtues of China have become common practice in the whole society.Public welfare donations are one of the important ways for companies to undertake social responsibilities.Studies have shown that companies’ active donations can bring advantages to companies in external resources,establish and maintain a good social image and social status,and maintain good relations with stakeholders.Relations,accumulate reputation capital,and then achieve the improvement of corporate value,but some scholars believe that corporate donations will cause the loss of resources,increase costs,and weaken the competitiveness of enterprises.This article will explore the impact of public welfare donations on the sustainability of corporate earnings.At the same time,from the perspective of corporate governance,taking the control of major shareholders as the moderating variable,this paper discusses how the control of major shareholders affects the above relations.In order to realize the research on the above issues,this paper selected 12865 observations as research samples,which are A-shares in Shanghai and Shenzhen Stock Exchanges from 2010 to 2019,what’s more,based on multiple regression method,determined the controlling relationship of major shareholders,public welfare donations and the persistence of earnings.The test results show that:(1)Public welfare donations improve the company’s persistence of earnings,that is,the more public donations a company makes,the higher the persistence of its earnings;(2)Major shareholders Control will inhibit the effect of public welfare donations on the persistence of corporate earnings,that is,the more concentrated the equity,the more likely it is to inhibit the positive correlation between corporate public donations and corporate earnings persistence;(3)Through further research,in the state-owned enterprises,the public welfare donations could improve the the persistence of corporate earnings more obviously,while in non-state-owned enterprises,the control of major shareholders could inhibit the above relationships more obviously;(4)Compared with non-strategic donations,The strategic donation of enterprises can promote the improvement of the persistence of earnings;(5)It is found that corporate public welfare donations may affect the persistence of earnings through the path of reputation,that is,corporate public donations can improve reputation,and after reputation is improved,the persistence of earnings will also increase.The research in this article has important enlightenment for promoting public welfare donations and realizing the sustainable development of enterprises.It also provides empirical evidence for modern corporate governance.