Redemption of original sin? Charitable donations of privatized enterprises in China

Yaya Shi, Yonggen Luo and Zhimin Wang

Applied Economics Letters, 2023, vol. 30, issue 8, 1107-1111

Abstract: We explore unethical behaviours involving original sin during the privatized process and their influence on corporate donations in China. We find that enterprises are more actively and deeply engaging in donations when they are guilty of being involved in certain types of misconduct during the privatization process, including downward earnings management, insider trading, and tunnelling, and this phenomenon has particularly significance in regions with lower levels of non-state economic development.

Date: 2023
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DOI: 10.1080/13504851.2022.2036680

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