Publication Type
Journal Article
Version
publishedVersion
Publication Date
12-2011
Abstract
Corporate philanthropy is expected to positively affect firm financial performance because it helps firms gain sociopolitical legitimacy, which enables them to elicit positive stakeholder responses and to gain political access. The positive philanthropy-performance relationship is stronger for firms with greater public visibility and for those with better past performance, as philanthropy by these firms gains more positive stakeholder responses. Firms that are not government-owned or politically well connected were shown to benefit more from philanthropy, as gaining political resources is more critical for such firms. Empirical analyses using data on Chinese firms listed on stock exchanges from 2001 to 2006 support these arguments.
Keywords
corporate philanthrophy, political connections, China, sociopolitical legitimacy, stakeholders
Discipline
Corporate Finance | Strategic Management Policy
Research Areas
Strategy and Organisation
Publication
Academy of Management Journal
Volume
54
Issue
6
First Page
1159
Last Page
1181
ISSN
0001-4273
Identifier
10.5465/amj.2009.0548
Publisher
Academy of Management
Citation
WANG, Heli and QIAN, Cuili.
Corporate philanthropy and corporate financial performance: The roles of social response and political access. (2011). Academy of Management Journal. 54, (6), 1159-1181.
Available at: https://ink.library.smu.edu.sg/lkcsb_research/3439
Copyright Owner and License
Publisher
Creative Commons License
This work is licensed under a Creative Commons Attribution-NonCommercial-No Derivative Works 4.0 International License.
Additional URL
https://doi.org/10.5465/amj.2009.0548