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Does Corporate Charitable Giving Help Sustain Corporate Performance in China?

Author

Listed:
  • Keling Wang

    (School of Business and Tourism Management, Yunnan University, Kunming 650091, China)

  • Yaqiong Miao

    (School of Business and Tourism Management, Yunnan University, Kunming 650091, China)

  • Ching-Hui (Joan) Su

    (Department of Apparel, Events, and Hospitality Management, College of Human Sciences, Iowa State University, Ames, IA 50011-1078, USA)

  • Ming-Hsiang Chen

    (School of Hospitality Business Management, Carson College of Business, Washington State University, Pullman, WA 99164-4742, USA
    Tourism and Social Administration College, Nanjing XiaoZhuang University, Nanjing 211171, China
    School of Business Administration, Anhui University of Finance and Economics, Bengbu 233030, China)

  • Zhongjun Wu

    (College of Tourism and Landscape Architecture, Guilin University of Technology, Guilin 541006, China)

  • Tie Wang

    (Department of Tourism Management, School of Geography and Tourism, Research Center of Tourism Development and Planning, Qufu Normal University, Rizhao 276826, China)

Abstract

We examined whether corporate charitable giving (CCG) in China benefits corporate performance (CP) in terms of sales growth ( SG ), return on asset ( ROA ), return on equity ( ROE ), and Tobin’s Q ( TQ ), and revealed several findings. First, testing shows variation in the impact of CCG on CP. Whereas the ratio of corporate charitable giving ( RCCG ) to total sales revenue does not significantly enhance SG , ROA , and ROE , it is positively related to TQ . Second, the positive relationship between RCCG and TQ originates from non-state-owned firms (NSOFs) rather than state-owned firms (SOFs). Third, Chinese firms may use CCG as traditional philanthropy to enhance long-term performance instead of strategically using it to generate short-term performance. Lastly, an inverted U-shaped relationship exists between RCCG and TQ , especially for NSOFs.

Suggested Citation

  • Keling Wang & Yaqiong Miao & Ching-Hui (Joan) Su & Ming-Hsiang Chen & Zhongjun Wu & Tie Wang, 2019. "Does Corporate Charitable Giving Help Sustain Corporate Performance in China?," Sustainability, MDPI, vol. 11(5), pages 1-17, March.
    • Handle: RePEc:gam:jsusta:v:11:y:2019:i:5:p:1491-:d:213029
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    References listed on IDEAS

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