Corporate philanthropy in a politically uncertain environment: does it bring tangible benefits to a firm? Evidence from China

doi:10.1080/1351847X.2018.1518252

CORC > 上海财经大学 > 上海财经大学

	Corporate philanthropy in a politically uncertain environment: does it bring tangible benefits to a firm? Evidence from China
	Chan, Kam C.1,2; Feng, Xunan 3
刊名	EUROPEAN JOURNAL OF FINANCE
	2019-02-11
卷号	25 期号:3 页码:256-278
关键词	Corporate philanthropy political uncertainty
ISSN号	1351-847X
DOI	10.1080/1351847X.2018.1518252
英文摘要	We examine the impact of political uncertainty on a firm's corporate philanthropy (CP) contribution and the associated direct tangible benefits of CP to a firm. Specifically, we examine two testable hypotheses. (1) When facing political uncertainty, a firm makes more CP, and (2) after a firm makes CP contributions during a period of uncertainty, it will obtain future tangible benefits. Using a sample of Chinese listed firms, we document that a firm, on average, increases its CP significantly during a period of political uncertainty (e.g. when there is a new local communist party secretary or mayor). In addition, we report that, on average, a firm's donation in year t is positively correlated with its amount of government subsidies, corporate income tax reduction, and short- and long-term bank loan amounts in year t + 1. The findings are robust compared to those of placebo tests and fixed effect models, as well as when using an alternative measure of political uncertainty. We observe that the results are more pronounced among non-state-owned enterprises (non-SOEs) than those among SOEs, corroborating the notion that during a period of political uncertainty, non-SOEs are more willing to build political connections with new city leaders through CP than are SOEs.
WOS研究方向	Business & Economics
语种	英语
出版者	ROUTLEDGE JOURNALS, TAYLOR & FRANCIS LTD
WOS记录号	WOS:000451608700003
内容类型	期刊论文
源URL	[http://10.2.47.112/handle/2XS4QKH4/348]
专题	上海财经大学
通讯作者	Feng, Xunan
作者单位	1.Fuzhou Univ Int Studies & Trade, Sch Accounting, Fuzhou, Fujian, Peoples R China; 2.Western Kentucky Univ, Gordon Ford Coll Business, Bowling Green, KY 42101 USA; 3.Shanghai Univ Finance & Econ, Sch Publ Econ & Adm, Dept Investment, Shanghai, Peoples R China
推荐引用方式 GB/T 7714	Chan, Kam C.,Feng, Xunan. Corporate philanthropy in a politically uncertain environment: does it bring tangible benefits to a firm? Evidence from China[J]. EUROPEAN JOURNAL OF FINANCE,2019,25(3):256-278.
APA	Chan, Kam C.,&Feng, Xunan.(2019).Corporate philanthropy in a politically uncertain environment: does it bring tangible benefits to a firm? Evidence from China.EUROPEAN JOURNAL OF FINANCE,25(3),256-278.
MLA	Chan, Kam C.,et al."Corporate philanthropy in a politically uncertain environment: does it bring tangible benefits to a firm? Evidence from China".EUROPEAN JOURNAL OF FINANCE 25.3(2019):256-278.