Corporate Philanthropy and Corporate Value—From the Reputation Perspective

Abstract

Corporate philanthropy has become an important strategy to some extent. This paper uses theoretical and empirical method to explore the impact of reputation on the relationship between corporate philanthropy and corporate value. We find that if the investors have already got the information about corporate charity, the external investors are likely to choose to invest in companies under specific conditions. Through the theoretical analysis, we find that the reputation has positive effect on the corporate value. We use the A-share listed private companies from 2009 to 2014 as the sample to explore the relationship between corporate philanthropy and corporate value in this empirical study. This paper has got some results: first, corporate philanthropy can increase the reputation of enterprises in the capital market. Second, the reputation of the company in the capital market can increase the corporate value. Third, corporate philanthropy can not increase the reputation of company in the business credit market.