Publication Type
Journal Article
Version
acceptedVersion
Publication Date
5-2020
Abstract
Building on stakeholder theory, the paper argues that geographical differences in stakeholders’ reactions to corporate philanthropy lead to differences in the relationship between corporate philanthropy and corporate financial performance across regions. When comparing the United States and China and different regions within China, it is found that the differences in stakeholder perceptions (as reflected by sinful industry) and information availability (as indicated by advertising intensity) across regions significantly moderate the corporate philanthropy–corporate financial performance relationship. The findings show that the value of corporate philanthropy varies by region and that stakeholder perception and information availability are two important mechanisms through which corporate philanthropy influences corporate financial performance.
Keywords
corporate philanthropy, corporate financial performance, geographical influences, stakeholder perception, information availability
Discipline
Corporate Finance | Strategic Management Policy
Research Areas
Strategy and Organisation
Publication
Regional Studies
Volume
54
Issue
5
First Page
660
Last Page
676
ISSN
0034-3404
Identifier
10.1080/00343404.2019.1668551
Publisher
Taylor & Francis (Routledge): SSH Titles
Citation
LU, Jane; LIANG, Xueji; and WANG, Heli.
Geographical influences on the relationship between corporate philanthropy and corporate financial performance. (2020). Regional Studies. 54, (5), 660-676.
Available at: https://ink.library.smu.edu.sg/lkcsb_research/6471
Copyright Owner and License
Authors
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/10.1080/00343404.2019.1668551