Corporate Philanthropy and Firm Performance Relationship – Socio- Political and Government Control Effects

IF 0.8 Q4 BUSINESS, FINANCE

Asian Journal of Business and Accounting Pub Date : 2022-06-30 DOI:10.22452/ajba.vol15no1.2

Sze-Sing Lam, Pauline Hie-Yiin Hung, Samuel P. M. Choi

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引用次数: 1

Abstract

Manuscript type: Research Paper Research aims: This study aims to examine the impacts of socialpolitical context and government control on the relationship between corporate philanthropy and firm performance using the listed firms’ data on the Hong Kong Stock Exchange (HKEX). Design/Methodology/Approach: This study uses multiple regression analysis to study the relationship between corporate philanthropy and firm performance using 2012-2018 Hong Kong listed firm data. Empirical results show a positive association between the current and lagged corporate philanthropy and financial performance. Subgroup analysis shows that the relationship is contingent on the socio-political and government control factors. Our subgroup analysis reveals that Hong Kong firms benefit more from corporate philanthropy than Mainland China firms, and non-government control mainland private firms have a stronger positive relationship than the state-owned enterprises. Our results support social impact theory and political connection theory. Theoretical contribution/Originality: Our study bridges the gap of prior studies on the philanthropy-corporate finance relationship by isolating the separate effect of socio-political context impact and government ownership. We believe we are the first study in this respect. Our findings validate the results of prior studies in general and suggest the empirical results based on transitional economy data is, to some extent, generalisable. Practitioner/Policy implication: Contemporary data provides empirical evidences that corporate philanthropy could elicit positive responses from stakeholders to bolster corporate financial performance, except firms under government control. The positive impact of donation was immediate with a lasting effect as suggested in the literature and the result would be relevant for regulators in formulating policies regarding corporate social performance. Research limitation/Implication: Similar to previous studies, corporate philanthropy is proxy by the monetary amount of donation in this study. However, the context of corporate philanthropy very often goes beyond monetary donations and the findings may not apply to firms making substantial non-monetary donations. Keywords: Corporate Philanthropy, Corporate Social Responsibility, Firm Performance, Socio-political Context, State-owned Enterprises. JEL Classification: M14

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企业慈善与企业绩效关系——社会政治和政府控制效应

手稿类型：研究论文研究目的：本研究旨在利用香港证券交易所上市公司的数据，研究社会政治背景和政府控制对企业慈善事业与公司绩效之间关系的影响。设计/方法/方法：本研究使用2012-2018年香港上市公司的数据，采用多元回归分析来研究企业慈善事业与公司绩效之间的关系。实证结果表明，当前和滞后的企业慈善事业与财务绩效之间存在正相关。亚群分析表明，这种关系取决于社会政治和政府控制因素。我们的子组分析表明，香港企业比中国大陆企业更能从企业慈善中受益，而非政府控制的大陆私营企业比国有企业具有更强的正相关关系。我们的研究结果支持社会影响理论和政治联系理论。理论贡献/独创性：我们的研究通过隔离社会政治背景影响和政府所有权的单独影响，弥合了先前对慈善企业融资关系研究的空白。我们相信我们是这方面的第一个研究。我们的研究结果总体上验证了先前研究的结果，并表明基于转型经济数据的实证结果在某种程度上是可推广的。从业者/政策含义：当代数据提供了经验证据，表明企业慈善事业可以引起利益相关者的积极反应，以提高企业财务绩效，但政府控制下的企业除外。正如文献所示，捐赠的积极影响是立竿见影的，具有持久的影响，其结果将与监管机构制定有关企业社会绩效的政策有关。研究局限性/含义：与之前的研究类似，在本研究中，企业慈善事业是由捐赠金额代表的。然而，企业慈善事业的背景往往超出了货币捐赠的范畴，研究结果可能不适用于进行大量非货币捐赠的企业。关键词：企业慈善，企业社会责任，企业绩效，社会政治背景，国有企业。JEL分类：M14

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来源期刊

Asian Journal of Business and Accounting BUSINESS, FINANCE-

CiteScore

2.00

自引率

11.10%

发文量

期刊介绍： An academic journal that aims to advance knowledge in the business and accounting disciplines, to narrow the gap between theory and practice, and to set direction for policy initiatives in Asia. Welcome to the Asian Journal of Business and Accounting (AJBA). AJBA is an international refereed journal, published biannually (30th June and 30th December) by the Faculty of Business and Accountancy, University of Malaya, Malaysia. AJBA aims to publish scholarly business researches that are relevant to Malaysia and the Asian region. It intends to highlight the practical implications in promoting better business decision making process and the formulation of public policy in Asia. This journal publishes theoretical, conceptual, and empirical papers within the broad areas of business and accounting in Asia. The AJBA covers a broad spectrum of the business and accounting disciplines. A suggestive (though not necessarily comprehensive) list of areas that would be included in this journal are: general management, strategic management, human resource management, organizational behaviour, labour and industrial relations, international business management, business communication, entrepreneurship, leadership, management science, operations management, production management, supply chain management, marketing management, brand management, consumer behaviour, information management, e-marketing, e-commerce, quality management, retailing, service marketing, hospitality management, hotel and tourism management, asset pricing, capital and money markets, corporate finance, derivatives markets, finance and banking, financial economics, etc.