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Regional cultural diversity and corporate philanthropy: evidence from Chinese dialects

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  • Jie Wang
  • Wanwan Wang
  • Qinghe Yang

Abstract

This study investigates the impact of regional cultural diversity on corporate philanthropy. We find that regional cultural diversity is negatively associated with corporate philanthropy. The mechanism analyses show that relationship between regional cultural diversity and corporate philanthropy is more pronounced in firms with lower CEO empathy and media coverage, indicating that regional cultural diversity reduces corporate philanthropy by affecting altruistic motive and reputational motive of firms. In addition, the relationship between regional cultural diversity and corporate philanthropy is more pronounced in regions with lower social trust.

Suggested Citation

  • Jie Wang & Wanwan Wang & Qinghe Yang, 2023. "Regional cultural diversity and corporate philanthropy: evidence from Chinese dialects," Asia-Pacific Journal of Accounting & Economics, Taylor & Francis Journals, vol. 30(3), pages 690-706, May.
    • Handle: RePEc:taf:raaexx:v:30:y:2023:i:3:p:690-706
    DOI: 10.1080/16081625.2021.2012702
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