The Impact Of Qualified Foreign Institutional Investor Shareholding On Corporate Charity Donation

Since the 18 th National Congress of the Communist Party of China(CPC),China’s high-level institutional Glasnost has been steadily advancing,and remarkable achievements have been made in utilizing and attracting foreign capital.As an important strategic measure for China to introduce foreign capital,the Qualified Foreign Institutional Investor(QFII)system,after 20 years of development,is gradually affecting the performance of China’s stock market and corporate behavior.Now comes the call of our country to realize Common prosperity and play the role of the third distribution.Charitable donations,as an important way of distributing social wealth for the third time,can effectively achieve wealth transfer and narrow the wealth gap.Corporate donations have always been the backbone of China’s charitable development.As an investor approved by the state,Qualified Foreign Institutional Investor,compared with domestic shareholders,has an advanced concept of social responsibility,so will it use professional knowledge and experience to affect corporate social responsibility performance,improve corporate philanthropy,and help China’s third distribution cause development? Therefore,this paper examines the relationship between Qualified Foreign Institutional Investor and corporate philanthropy.Based on the hypothesis of effective supervision,the theory of strategic charitable behavior,the theory of resource dependence,and the theory of signal transmission,this article focuses on all A-share listed companies in China from 2008 to 2021,excluding the financial and insurance industries and ST and * ST companies.Based on the different dynamics of corporate charitable donations,by constructing an econometric model,corporate charitable donations are divided into strategic charitable donations and self profit charitable donations,From the perspective of Qualified Foreign Institutional Investor’s shareholding,this paper examines the relationship between it and corporate philanthropy and different donation motives,and further differentiates the impact of different property rights.In addition,from the perspective of financing constraints and media attention,this paper explores the impact mechanism between Qualified Foreign Institutional Investor and corporate philanthropy.In the expansion analysis,this article examines the management’s short-sighted behavior in the internal and external environment of the company,as well as the impact of the integration of the chairman and general manager roles,as well as the auditor’s professionalism,institutional environment level,and industry competition in the external environment,on the research results of this article.The findings are as follows: First,shareholding of Qualified Foreign Institutional Investor can significantly improve the level of corporate philanthropy;Secondly,after distinguishing different charitable donation motives,the shareholding of Qualified Foreign Institutional Investor is significantly positively correlated with strategic charitable donations,but not with self serving charitable donations;Third,compared with state-owned enterprises,the shareholding of Qualified Foreign Institutional Investor can significantly improve the level of charitable donations of non-state-owned enterprises;After further dividing the motives of charitable donations,whether in state-owned or non-state-owned enterprises,the shareholding of Qualified Foreign Institutional Investor will only significantly improve strategic charitable donations,but will not significantly improve the level of self serving charitable donations;Fourth,Qualified Foreign Institutional Investor’shareholding improves the level of corporate philanthropy by easing corporate financing constraints and attracting media attention;Fifthly,when the management is less shortsighted and the chairman and general manager are not in the same position,the shareholding of Qualified Foreign Institutional Investor can significantly affect the level of corporate philanthropy;Among enterprises with low auditor professionalism,low level of institutional environment and low level of industry competition,Qualified Foreign Institutional Investor have a better effect on improving the level of corporate philanthropy.