The Research of Relationship between Corporate Philanthropy and Corporate Financial Performance

摘要

The study examines the relationship between Corporate Philanthropy and corporate financial performance. It proposes a theoretical model that Corporate Philanthropy affects CFP by generating or protecting intangible assets, with the moderation of Enterprise Life Cycles. Notably, the process and mechanism varies with different stakeholders. Furthermore, it empirically tests the theoretical model by using the data of 285 Chinese public corporations. The evidence verifies the theoretical framework that, there is an inverse U-shaped correlation between Corporate Philanthropy and corporate financial performance. Moreover, the result suggests that Corporate Philanthropy has a more positive effect on CFP for corporations in late life cycles, compared with those in early stages with small scale, all else being equal.