Abstract

This paper explores the effect of corporate philanthropy on corporate value based on mathematical model. It analyzes the relationship between corporate philanthropy and corporate value from the perspective of the listed companies and the government. Based on the theoretical analysis between government and companies, this paper finds that the effort of corporate philanthropy is not fixed. There existing a certain critical condition. Equity structure should be considered as an important factor to analyze the corporate philanthropy behavior. Our results also can be used to improve internal control environment, optimize equity structure, strengthen supervision and management, and to develop a scientific charity policy.

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