Charitable donations by China’s private enterprises

Gustafsson, Björn; Yang, Xuejuan; Shuge, Gang; Dai, Jing

doi:10.1016/j.ecosys.2016.10.007

Cited by 13 publications

(8 citation statements)

References 9 publications

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“…Given the short duration of the study period, there was hope that if a longer period of data was used, these results may significantly improve. This is particularly because the results of this study were in agreement with similar studies like Esteban-Sanchez et al 2017, Gustafsson et al (2017), and Houqe et al (2019).…”

Section: Empirical Modelsupporting

confidence: 93%

“…Their results indicated that the level of a company's donations has a significant impact on its share price and its value, and is able to offset any agency conflict that may arise when the decisions of the management to gift is not aligned with the shareholders' value propositions. Results of Houqe et al (2019) corroborated prior findings by Gustafsson, Yang, Shuge, and Jianzhong (2017), who found that corporate donations are related to a company's financial returns.…”

Section: Literaturesupporting

confidence: 57%

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Corporate Philanthropy and Firm Value in Africa: A case study of Selected Firms in South Africa

Ouma

2020

IRPSI

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This study sought to investigate the relationship between corporate philanthropy and firm value in Africa, using firms listed on the Johannesburg Securities Exchange as the representative sample. The analysis discovered that only 25 firms had complete data over a short period of 11 years resulting in a panel of 255 firm-year observations. The study established that Corporate Donations in South Africa is moderately nascent but has been growing steadily over the last few years. With only 13 firms involved in corporate donations by the year 2008, the number is found to be ten times by the end of 2018. Using the panel ordinary least squares model, results revealed that four variables, including the corporate social responsibility index, positively influenced firm value. The study also investigated the motives for corporate philanthropy. Results indicated that the book value of a firm, sales revenue size (total assets), leverage, and corporate social responsibility reporting significantly influenced a firm's decision to donate to charity. The findings indicate that a firm's participation in charity is a long-term strategic commitment for financial returns to all corporate stakeholders.

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Section: Empirical Modelsupporting

confidence: 93%

Section: Literaturesupporting

confidence: 57%

Corporate Philanthropy and Firm Value in Africa: A case study of Selected Firms in South Africa

Ouma

2020

IRPSI

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“…The signs of the coefficients on control variables echo those in the existing literature. The coefficients on AGE , SIZE , INTANG and PROFIT are significantly positive, indicating that firms with longer age, larger scale, higher proportion of intangible assets and better profit perform better in corporate philanthropy (Amato and Amato, 2007; Du et al , 2014; Gustafsson et al , 2017; Luo et al , 2017; Zhang et al , 2010a; Zheng and Zhang, 2016). The coefficients on POC and DW are also significantly positive, suggesting that entrepreneurs with political connections and higher social status have a higher enthusiasm for corporate philanthropy (Li et al , 2015; Wei et al , 2018).…”

Section: Resultsmentioning

confidence: 99%

“…In firm-specific characteristics, compared with state-owned firms, private firms are more likely to increase the probability and extent of corporate donations (Zhang et al , 2010a). Given that firm’s resource acquisition capability, abundant cash resources and better profitability will boost corporate philanthropy (Gustafsson et al , 2017). Amato and Amato (2007) further find a U-shaped relationship between a firm’s scale and CSR participation, suggesting that medium-sized firms contribute relatively little to charitable donations.…”

Section: Institutional Background Literature Review and Hypotheses Developmentmentioning

confidence: 99%

To be more philanthropic when joining the government-controlled business association? Evidence from Chinese private firms

Yan

2021

CMS

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Purpose The purpose of this paper is to investigate whether and how affiliation with the government-controlled business association, namely, China Federation of Industry and Commerce (CFIC), affects corporate philanthropy in an emerging market. Design/methodology/approach Through an analysis of survey data gathered from Chinese private firms, this paper conducts multiple regressions to examine the impact of the CFIC membership on corporate philanthropy. Findings Empirical results show that the CFIC membership of private entrepreneurs is significantly positively associated with corporate philanthropy. Moreover, this study finds that the provincial marketization level and the firm Communist Party branch attenuate the positive association between CFIC membership and corporate philanthropy, indicating that the effect of CFIC on corporate philanthropy is more pronounced in regions with lower marketization level and firms without Communist Party branch. The findings are robust to various alternate measures of corporate philanthropy and remain valid after controlling for potential endogeneity. Practical implications Firms will be more active in corporate philanthropy to respond to the government’s governance appeal when they join the CFIC. This highlights the implications of political connections and in particular on the value of government-controlled business associations in the Chinese business world. Originality/value This study extends the literature on the determinants of corporate philanthropy and deepens the theoretical understanding of the governance role of business association with Chinese characteristics.

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“…Our regression includes a set of control variables as follows, which are similar to previous studies (Brammer & Millington, 2008;Chan et al, 2017;Chen et al, 2018;Gustafsson et al, 2017;Iatridis, 2015;Luo et al, 2017;Wei et al, 2018;Zhang et al, 2010). Size is the natural logarithm of assets; Leverage is total liabilities divided by total assets.…”

Section: Regression Modelmentioning

confidence: 99%

Early Life Suffering Experience from Great Famine on Firm Charity, Agency Costs, and Corporate Governance

Yang

2021

The Chinese Economy

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This study examines the impact of directors' famine experience on the corporate donation decision. We use a unique data set of 16,082 firm-year observations from Chinese listed firms to show that directors who experienced the Great Chinese Famine during 1959-1961 make more corporate donations, a result that supports the path dependency theory related to the effect of prior experiences on subsequent behaviors. The relationship between a director's famine experiences and corporate charitable contributions is robust across different types of ownership and industry. We further show that these directors appear to consume fewer perquisites (i.e., lower agency costs), improve social responsibility, mitigate earnings management, and enhance internal control quality.

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Charitable donations by China’s private enterprises

Cited by 13 publications

References 9 publications

Corporate Philanthropy and Firm Value in Africa: A case study of Selected Firms in South Africa

Corporate Philanthropy and Firm Value in Africa: A case study of Selected Firms in South Africa

To be more philanthropic when joining the government-controlled business association? Evidence from Chinese private firms

Early Life Suffering Experience from Great Famine on Firm Charity, Agency Costs, and Corporate Governance

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