Abstract Taking A-share listed companies in China from 2009 to 2016 as a sample, this study investigates the internal mechanism and heterogeneity of strategic philanthropy donation dynamic adjustment by Heckman model and GMM. The results show that the relation between philanthropy donation and enterprise value is inverted U-shape, which means that appropriate philanthropy donation contributes to the enterprise value maximization. But it’s hard for enterprises to always keep philanthropy donation at an appropriate level. The enterprises have to adjust the donation level dynamically around the target level. The faster the speed of donation dynamic adjustment is, the higher the allocative efficiency of donation resources will be. The study further investigates the heterogeneity of the donation under different property rights and competitive situation, and finds that compared with the state-owned enterprises, private enterprises adjust philanthropy donation more quickly and the enterprises in a highly competitive industry or the enterprises with weaker competitiveness adjust philanthropy donation more quickly.
