Political Connection, Institutional Environment and Corporate Philanthropy
We study corporate philanthropy using an original database that includes firm-level data on cash giving, political connection, and institutional environment in corporate contribution after Sichuan Earthquake at 12, May, 2008. Results provide support for the theory that political connection enhances corporate philanthropy, as firms with political connection tend to adopt giving practices to generate insurance-like protection of relational wealth; meanwhile firms that condition high levels of law enforcement environment and low risks of loss political connection give less to charity. However, much of our evidence indicates that mangers adopt corporate philanthropy to maintain personal political connection with governments which mask their personal benefits from philanthropic contribution and philanthropy insurance-like protection theory combined with agency costs play a prominent role in explaining corporate giving. Firms with political connection, larger boards of directors and higher interest conflicts among controlling shareholders and other investors are associated with significantly more cash giving. The empirical work considers the impact of institutional environment as well as risks of loss political connection on corporate giving and the relationship between political connection and corporate social responsibility.
Political connection Law enforcement philanthropic contribution corporate philanthropic disaster response (CPDR)
Ming Jia Difang Wan Zhe Zhang
School of Management, Xian Jiaotong University, mail box NO.1843, Xian,Shaanxi, China, 710049 School of Managemetn ,Xi’an Jiaotong Unvierisity, xi’an, Shaanxi, 710049,China School of Management, Xi’an Jiaotong University, xi’an, Shaanxi 710049,China
国际会议
广州
英文
1-40
2009-07-07（万方平台首次上网日期，不代表论文的发表时间）