Analysis Of The Spillover Effect Of Corporate Giving Under Public Service Events

With the rapid development of the economy,China has now become the world’s second largest economy,and as the vanguard of the country’s economic development,the fulfillment of corporate social responsibility has become a growing concern.In addition to the frequent occurrence of major public health incidents in China in recent years,the demand for corporate donations has also gradually increased,and the strategic philanthropic effect has begun to play an important role in the process of corporate management.The "strategic philanthropy" motive is a shift from the initial "non-profit" and "philanthropic" nature of philanthropy to "strategic philanthropy".The "strategic philanthropy" motive considers that corporate philanthropic giving has a positive impact on both tangible and intangible capital and contributes to corporate performance.This paper examines the relationship between corporate philanthropic giving,exposure and corporate performance by taking a panel of private listed companies in China from2014 to 2021 as a sample and conducting a regression analysis of the association equation.The paper mainly draws the following conclusions:(1)the performance of enterprises with too much or how much charitable giving is higher than that of enterprises with average charitable giving,that is,corporate charitable giving and corporate performance are in a U-shaped relationship,that is,when the amount of donation is less than the threshold of the desired donation size,the amount of corporate giving is negatively correlated with corporate performance;when the amount of donation is greater than the threshold of the desired donation size,the amount of corporate giving is positively correlated with corporate performance.(2)When the corporate donation scale is smaller than the ideal donation scale threshold,the higher the charitable exposure,the greater the negative effect of charitable giving on corporate performance;when the corporate donation scale is larger than the ideal donation scale threshold,the higher the charitable exposure,the greater the positive effect of charitable giving on corporate performance.This paper provides a cautious message on the size of donations from a corporate performance perspective,opening up new avenues for companies to improve their performance and helping China to have more funds for disaster relief and post-disaster reconstruction when experiencing a disaster.