Corporate philanthropy, ownership type, and financial transparency

Research output: Journal Publications and Reviews (RGC: 21, 22, 62)21_Publication in refereed journalNot applicablepeer-review

12 Scopus Citations
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Detail(s)

Original languageEnglish
Pages (from-to)851-867
Journal / PublicationJournal of Business Ethics
Volume130
Issue number4
Early online date6 Mar 2014
Publication statusPublished - Sep 2015

Abstract

Drawing on stakeholder theory and the concept of enlightened self-interest, we argue that firms that actively engage in corporate philanthropic giving also tend to demonstrate greater concern for investors’ interests by providing more transparent financial information and avoiding corporate misconduct. Moreover, the relationships between corporate giving, financial information transparency, and corporate misconduct vary significantly according to the firm’s ownership type, which affects the fundamental motivations for corporate philanthropy. In a sample of Chinese publicly listed firms from the 2003–2009 period, we find a positive relationship between corporate giving and financial transparency, and note that the relationship is stronger for non-state-owned enterprises (non-SOEs). We also find a significantly negative association between corporate giving and corporate misconduct for non-SOEs, but not for SOEs. Taken together, these findings suggest that responsibility to both stakeholders and shareholders is a vital part of building trust and reputations in China’s non-SOE sector.

Research Area(s)

  • Chinese context, Corporate misconduct, Corporate philanthropy, Financial transparency, Ownership

Citation Format(s)

Corporate philanthropy, ownership type, and financial transparency. / Qian, Cuili; Gao, Xinzi; Tsang, Albert.

In: Journal of Business Ethics, Vol. 130, No. 4, 09.2015, p. 851-867.

Research output: Journal Publications and Reviews (RGC: 21, 22, 62)21_Publication in refereed journalNot applicablepeer-review