Journal of Business Ethics 45 (3):195 - 211 (2003)
In a departure from the traditional studies of corporate philanthropy that focus on board composition, advertising, and social networks, the authors investigate the financial correlates of corporate philanthropy. The research design controls for firm size and industry while observing firms from a variety of industries. The sample contains matched pairs of generous and less generous corporate givers. The authors find, as hypothesized, a positive relationship between a firm''s cash resources available and cash donations, but no significant relationship between corporate philanthropy and firm financial performance, regardless of whether corporate philanthropy is measured as cash payouts or the aggregate contributions that charities actually receive, and regardless of whether financial performance is gauged using accounting measures or market measures. Whereas the link between available resources and corporate philanthropy is well accepted in the literature on corporate social responsibility, it has been rarely tested and never so definitively found as in this research.
|Keywords||agency theory cash flow corporate philanthropy financial performance strategic management|
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Citations of this work BETA
Religion, the Nature of Ultimate Owner, and Corporate Philanthropic Giving: Evidence From China.Xingqiang Du, Wei Jian, Yingjie Du, Wentao Feng & Quan Zeng - 2013 - Journal of Business Ethics 123 (2):1-22.
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The Worth of Values – a Literature Review on the Relation Between Corporate Social and Financial Performance.Pieter van Beurden & Tobias Gössling - 2008 - Journal of Business Ethics 82 (2):407-424.
Talk the Walk: Measuring the Impact of Strategic Philanthropy. [REVIEW]Karen Maas & Kellie Liket - 2011 - Journal of Business Ethics 100 (3):445 - 464.
The Impact of Operational Diversity on Corporate Philanthropy: An Empirical Study of U.S. Companies. [REVIEW]Jean D. Kabongo, Kiyoung Chang & Ying Li - 2013 - Journal of Business Ethics 116 (1):49-65.
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