Does Corporate Charitable Giving Help Sustain Corporate Performance in China?

Keling Wang, Yaqiong Miao, Ching-Hui (Joan) Su, Ming-Hsiang Chen, Zhongjun Wu and Tie Wang
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Keling Wang: School of Business and Tourism Management, Yunnan University, Kunming 650091, China
Yaqiong Miao: School of Business and Tourism Management, Yunnan University, Kunming 650091, China
Ching-Hui (Joan) Su: Department of Apparel, Events, and Hospitality Management, College of Human Sciences, Iowa State University, Ames, IA 50011-1078, USA
Ming-Hsiang Chen: School of Hospitality Business Management, Carson College of Business, Washington State University, Pullman, WA 99164-4742, USA
Zhongjun Wu: College of Tourism and Landscape Architecture, Guilin University of Technology, Guilin 541006, China
Tie Wang: Department of Tourism Management, School of Geography and Tourism, Research Center of Tourism Development and Planning, Qufu Normal University, Rizhao 276826, China

Sustainability, 2019, vol. 11, issue 5, 1-17

Abstract: We examined whether corporate charitable giving (CCG) in China benefits corporate performance (CP) in terms of sales growth ( SG ), return on asset ( ROA ), return on equity ( ROE ), and Tobin’s Q ( TQ ), and revealed several findings. First, testing shows variation in the impact of CCG on CP. Whereas the ratio of corporate charitable giving ( RCCG ) to total sales revenue does not significantly enhance SG , ROA , and ROE , it is positively related to TQ . Second, the positive relationship between RCCG and TQ originates from non-state-owned firms (NSOFs) rather than state-owned firms (SOFs). Third, Chinese firms may use CCG as traditional philanthropy to enhance long-term performance instead of strategically using it to generate short-term performance. Lastly, an inverted U-shaped relationship exists between RCCG and TQ , especially for NSOFs.

Keywords: Chinese listed firms; corporate charitable giving; corporate performance (search for similar items in EconPapers)
JEL-codes: O13 Q Q0 Q2 Q3 Q5 Q56 (search for similar items in EconPapers)
Date: 2019
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (3)

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