Corporate Philanthropy,Brand Equity and Corporate Performance: An Analysis based on Data of China's Listed Companies
Guo Guoqing1, Chen Fengchao1, Gu Leilei2,3
1.School of Business,Renmin University of China,Beijing 100872,China; 2.Business School,Central University of Finance and Economics,Beijing 100081,China; 3.China-ASEAN Collaborative Innovation Center for Regional Development,Nanning 530004,China
Abstract：On the basis of the data of listed companies in China from 2006 to 2014,this paper empirically analyzes the impact of corporate philanthropy on corporate performances and the role of brand equity in philanthropy-performance relationship.Empirical results indicate that corporates that donate too little or too much performs better than corporates that donate a common scale level.Consequently,corporate philanthropy and performance present a U-type relationship.And when the scale of corporate philanthropy is below the ideal critical point(1.296% of corporate operating revenue)for the current sample,the negative effect of corporate philanthropy on performance is much stronger for corporate with higher brand equity.Therefore,managers should carefully decide the scale of philanthropy based on the corporate brand equity to avoid the stakeholders mistaken “charity” for “hypocritical” and to conductively enhance corporate performance.
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