Why Do Corporations Give to Charity?

Peter Navarro

The Journal of Business, 1988, vol. 61, issue 1, pages 65-93

Abstract: This paper explores whether corporate contributions should be tax dedu ctible within the more general context of an examination of the profi t and utility maximization motives driving contributions. The theoret ical section develops a formal structural model of the contributions process, illustrates comparative statics, and derives a set of empiri cally-testable hypotheses. Using a new source of firm data, the empir ical results indicate that profit maximization is an important motive driving contributions. This finding supports the current tax-deducti ble status of contributions (up to a seldom-encoun-tered ceiling) and favors a reform that allows firms to treat contributions as ordinary business expenses. Copyright 1988 by the University of Chicago.

Date: 1988
References: Add references at CitEc
Citations View citations in EconPapers (17) Track citations by RSS feed

Downloads: (external link)
http://www.jstor.org/fcgi-bin/jstor/listjournal.fcg/00219398/.61-.67 full text (application/pdf)
Access to full text is restricted to JSTOR subscribers. See http://www.jstor.org for details.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: http://EconPapers.repec.org/RePEc:ucp:jnlbus:v:61:y:1988:i:1:p:65-93

Access Statistics for this article

More articles in The Journal of Business from University of Chicago Press
Series data maintained by Journals Division ().