The Contingent Value of Political Connections on Donations to Chinese Foundations: Exploring the Moderating Role of Transparency

Cheng, Yuan; Zeng, Wu

doi:10.1177/0095399720945969

Cited by 19 publications

(18 citation statements)

References 38 publications

(63 reference statements)

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“…During the past five years, there has been a volume of literature studying the transparency and associated factors of CFs in China [3,[25][26][27][28]. More recently, there has been a surge of studies focusing on the political connections of Chinese foundations [29,30]. However, we have found no literature focusing on the empirical study of tax-exempt status of contemporary CFs in China.…”

Section: Introductionmentioning

confidence: 91%

“…In emerging economies especially, tax-exempt status is regarded as a legal status and sign of government support [17]. Some literature documents that nonprofit organizations in China have faced additional barriers to gain official recognition for tax-exempt purposes, mainly due to some high-profile scandals in recent years [29].…”

Section: Signaling Effect Of Tax-exempt Statusmentioning

confidence: 99%

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Tax-Exempt Status and Associated Factors among Charitable Foundations in China

Wang

et al. 2021

Sustainability

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Tax exemption plays an important role in the sustainability of charitable organizations (COs). The 2016 Charity Law of China provides stronger tax incentives for charity donations. Using 767 observations of Chinese charitable foundations (CFs) during 2010–2018 from the China Foundation Center database and manually collected tax-exempt status data, this study applies multivariate logistic regression analysis to examine the association between tax-exempt status and related key factors, such as transparency and donation dependency. This study found that a one-point increase in the transparency score of a CF is associated with a 3.9 percentage points higher likelihood of having at least one type of tax-exempt qualification (OR = 1.039, p < 0.01). There is in general a significantly positive association between tax-exempt status and donation dependency of CFs in China. After 2016, the CFs responded actively to the tax incentive provided by the Charity Law, which in return requires a higher level of transparency. These results suggest that taxation under the legal system may effectively function to promote the sustainability of charity foundations in China in the long run. Further studies are needed to explore in-depth why CFs with advanced tax-exempt qualifications concentrate in Beijing and Shanghai.

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Section: Introductionmentioning

confidence: 91%

Section: Signaling Effect Of Tax-exempt Statusmentioning

confidence: 99%

Tax-Exempt Status and Associated Factors among Charitable Foundations in China

Wang

et al. 2021

Sustainability

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“…The rating results have been widely recognized among philanthropists, donors, and the public. Nonprofit academics also employ the transparency data to study the development of philanthropy in China (Bies & Kennedy, 2019;Cheng & Wu, 2021;Hua, 2021). Overall, the two data sets provide researchers with the most comprehensive and reliable data about Chinese foundations.…”

Section: Data Sourcesmentioning

confidence: 99%

Whom you connect with matters for transparency: Board networks, political embeddedness, and information disclosure by Chinese foundations

Zhou

Zhu

Zheng

2021

Nonprofit Mgmnt & Ldrshp

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Although the requirements for nonprofit transparency are increasing worldwide, the implementation of disclosure practices remains questioned. Drawing on social network theory, this study proposed that the size of and position in interlocking board networks can increase the propensity of foundations to promote transparency.It also hypothesized that political embeddedness, measured by the presence of powerful government officials,

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“…The second article by Cheng and Wu (2020) investigates the effects of both the external institutional environment and internal governance mechanisms on private donations to Chinese foundations. They extend the research on political ties established by Chinese nonprofits with government officials, either incumbent or retired, as a widely adopted strategy for survival and development.…”

Section: Overview Of Articles In the Administration And Society Symposiummentioning

confidence: 99%

Disentangling the Myth of Nonprofit–Government Relations in China

Zhang

Guo

2020

Administration & Society

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The evolving nonprofit–government relations in China have attracted increasing attention from scholars over the past four decades. The complexity and fluidity of the relations, however, pose substantial challenges to analysis. Recently, to disentangle the myth of the important relationships, research has been progressing primarily in three directions toward greater methodological diversity, stronger focus on the behaviors of nonprofit organizations vis-à-vis the governments, and more research synthesis. This symposium brings together three studies that represent these trends. After providing a brief historical overview of the study on nonprofit–government relations in China, individual contributions to this symposium are characterized.

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The Contingent Value of Political Connections on Donations to Chinese Foundations: Exploring the Moderating Role of Transparency

Cited by 19 publications

References 38 publications

Tax-Exempt Status and Associated Factors among Charitable Foundations in China

Tax-Exempt Status and Associated Factors among Charitable Foundations in China

Whom you connect with matters for transparency: Board networks, political embeddedness, and information disclosure by Chinese foundations

Disentangling the Myth of Nonprofit–Government Relations in China

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