‘Original sin’ suspicion, institutional environment, and corporate philanthropy in private enterprises

Xue Li, Jin-hui Luo and Zeyue Huang

China Journal of Accounting Studies, 2019, vol. 7, issue 1, 119-143

Abstract: The suspicion of ‘original sin’ is an unavoidable problem in the development of China’s private enterprises. Using a sample of A-share private listed firms from 2004–2016, we investigate whether and how the suspicion of ‘original sin’ of private enterprises affects their corporate philanthropy. We find that private enterprises with the suspicion of ‘original sin’ have stronger incentives to take corporate philanthropy as a strategic tool to reduce the threat arising from the ‘original sin’. High development levels of institutional environment can attenuate the positive effect of ‘original sin’ suspicion on private enterprises’ corporate philanthropy. Furthermore, we find that the positive association between the ‘original sin’ suspicion of private enterprises and their corporate philanthropy is more pronounced when they do not have political connections and/or after their ultimate controllers are showed up on the Hurun Rich List.

Date: 2019
References: Add references at CitEc
Citations: View citations in EconPapers (1)

Downloads: (external link)
http://hdl.handle.net/10.1080/21697213.2019.1643068 (text/html)
Access to full text is restricted to subscribers.

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: https://EconPapers.repec.org/RePEc:taf:rcjaxx:v:7:y:2019:i:1:p:119-143

Ordering information: This journal article can be ordered from
http://www.tandfonline.com/pricing/journal/rcja20

DOI: 10.1080/21697213.2019.1643068

Access Statistics for this article

China Journal of Accounting Studies is currently edited by Xiaochen Dou

More articles in China Journal of Accounting Studies from Taylor & Francis Journals
Bibliographic data for series maintained by Chris Longhurst ().