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The benevolence of the billionaires: Evidence from China's Hurun rich list1

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  • Kong, Gaowen
  • Xu, Li
  • Zhang, Wenzhe

Abstract

This study investigates whether and how the public pressure on entrepreneurs' wealth shapes corporate donations in the context of China. Using a sample in 2010–2019 and a general difference-in-difference approach, we find that debuted entrepreneurs will increase corporate donations. This is robust to different samples and estimation approach. We also demonstrate the mediating effect of media coverage and find the impact is augmented when firms are located in areas with a poor institutional environment or less information transparency. This article explains the impact of the public pressure on corporate decision-making from the perspective of the disclosure of entrepreneurs’ wealth.

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  • Kong, Gaowen & Xu, Li & Zhang, Wenzhe, 2022. "The benevolence of the billionaires: Evidence from China's Hurun rich list1," Finance Research Letters, Elsevier, vol. 48(C).
    • Handle: RePEc:eee:finlet:v:48:y:2022:i:c:s1544612322002665
    DOI: 10.1016/j.frl.2022.103030
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    Cited by:

    1. Yue, Jun & Li, Yilin, 2023. "Media attention and corporate greenwashing behavior: Evidence from China," Finance Research Letters, Elsevier, vol. 55(PB).

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    More about this item

    Keywords

    Public pressure; Rich list; Donation;
    All these keywords.

    JEL classification:

    • G30 - Financial Economics - - Corporate Finance and Governance - - - General
    • G41 - Financial Economics - - Behavioral Finance - - - Role and Effects of Psychological, Emotional, Social, and Cognitive Factors on Decision Making in Financial Markets

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