The Impact Of Charitable Donations On Corporate Valu

Most of the existing studies believe that corporate charitable donations have a positive impact on the market value of companies,but some of them believe that corporate value has nothing to do with corporate charitable donations.In recent years,some scholars have put forward the theory of strategic philanthropy,using charitable donations to obtain key resources,close the relationship with the government,and guide the rise of corporate value.Charitable donations go beyond the previous theory of shareholder benefit maximization.Although charitable donations occupy the resources of enterprises,they also bring new opportunities for enterprises to obtain new resources,such as improving the relationship with stakeholders(Liu Yinguo,2019).),strengthen ties with the government(Zhou Hui,2022),and improve the company’s ethical standards(Sigitas,2015,etc.).Existing studies have proved that charitable donations have a positive impact on corporate value,but its specific transmission mechanism is still unclear.This paper uses the unique perspective of analysts’ attention to study the interaction between the two.The charitable donations of enterprises will bring public attention to the enterprises,and the companies concerned by public opinions will be favored by analysts.The analysts convey other aspects of the enterprises to investors through follow-up analysis,and at the same time increase the enterprises’ popularity in the hearts of investors.Exposure,attracting investors to invest,thereby driving the value of the company up.The relevant literature reviewed in this paper mainly focuses on the fields of charitable donations,corporate value and analyst attention.The theoretical foundations mainly include stakeholder theory,government-enterprise correlation theory,and signal transmission theory.Based on the literature and theory,this paper proposes the research hypothesis of this paper..The main research objects are A-share listed companies from 2004 to 2021,and the impact of analysts’ charitable donations on corporate value is discussed.Through empirical research,it is found that corporate charitable donations can indeed promote the rise of corporate value.Analysts’ attention is one of the channels for the influence of the two,and the charitable donations of private enterprises are more recognized by investors.This paper studies the impact mechanism of corporate charitable giving from the perspective of long-term responses to corporate value.It complements existing research and provides lessons for business executives,government agencies,and investors.