The Correlation Between Nationalized Companies,Internationalization,Corporate Philanthropy and Financial Performance under China Context

• Main Authors: ShanShan, Zhou, 周珊珊
• Other Authors: Wei-Hwa, Pan
• Format: Others
• Language: zh-TW
• Published: 2015
• Online Access: http://ndltd.ncl.edu.tw/handle/18776514283203321974

博士 === 國立雲林科技大學 === 企業管理系 === 103 === Due to the difference of each market , the golabl marketing strategy normaly will not adapt identical global market strategy.Affected by the growing globalization and internalization trends, international market competition intensifies. Local companies have to face the competition from multinational companies. They have to adapt strategies according to the market characteristics, to gain competitive advantage. Corporate philanthropy has become a trend, because it brought for the enterprise a lot of benefits, for example, accumulating corporate reputations capital, creating a good corporate citizen image, increasing the sales revenue and attracting key stakeholders to invest, drawing excellent staff to apply job vacancies, thus increasing financial performance. American and European companies have a tradition of charitable donation as one of the corporate social responsibility, regardless of their businesses to compete in the domestic or foreign markets. Chinese companies should take into account this culture and adapt it as one of the corporate strategies to increase competitive advantage and not to be left behind by the market. Corporate Philanthropy in Europe and America has been for long years corporate strategy. For Asian enterprises, it is necessary to understand and learn from this strategic framework. This paper explores the perspectives, among the principle of corporate governance, the ownership and state-owned enterprises, of philanthropy behavior characteristics. In this paper, corporate governance’s agency theory point of view represents the cost of corporate philanthropy, while stakeholder theory represents for business interests. The simple formula of benefit reduced by the cost stands for the bottom line net value of of corporate philanthropy. The corporate social responsibility theory (CSR) and the Slack Resource Theory are incorporated to help explaining the correlation between philanthropy and corporate financial performance. In this paper, the companies are sourced from the board of the Shenzhen and Shanghai stock listed companies with seven consecutive years 2006-2012. The annual charitable donations and financial data are collected for empirical analysis. The collection of foreign literature to understand western countries provides the basis to test the model of corporate philanthropy and financial performance. It not only compare the difference, but also understand the nature of the different culture. This article is one of the very few researches on Chinese companies over the correlation between corporate philanthropy and financial performance. In has significant reference value.The results show that CP has positive link with CFP. Industries vary in CFP result as expected.