Research on the relationship between corporate philanthropy and executive hidden corruption

This study examines the relationship between corporate philanthropy and executive hidden corruption using data from A-share listed companies in China from 2012 to 2022. The results show that higher levels of charitable donations are associated with a greater likelihood of hidden executive corruption. Effective internal control significantly weakens this relationship. This effect is more pronounced in non-state-owned enterprises, where both the positive association and the moderating role of effective internal control are stronger. Further analysis reveals that while media attention does not eliminate the positive link, it reduces its strength, along with the moderating impact of internal control. Board independence does not directly influence the philanthropy-corruption relationship; however, in state-owned enterprises with strong board independence, the mitigating role of internal control becomes more evident. these findings offer insights into how corporate governance mechanisms and external oversight can help curb executive misconduct associated with philanthropic activities.