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Corporate Support for Artistic and Cultural Activities: What Determines the Distribution of Corporate Giving?

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  • Mark LeClair
  • Kelly Gordon
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    Abstract

    This paper examines the allocation of corporate donations among variouscategories of recipients and the reasons underlying that allocation. Ananalytical model is utilized to determine the importance of profitability,firm size, advertising expenditures and type of business in determining thelevel of support for each activity. The results demonstrate that corporategiving to artistic/cultural activities is correlated with advertisingexpenditures, while donations to educational, civic and health causes are not.Thus, support for culture and the arts is a means of directly promoting thefirm, while giving to other causes fulfills the firm's goals throughalternative means. Copyright Kluwer Academic Publishers 2000

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    File URL: http://hdl.handle.net/10.1023/A:1007686500896
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    Bibliographic Info

    Article provided by Springer in its journal Journal of Cultural Economics.

    Volume (Year): 24 (2000)
    Issue (Month): 3 (August)
    Pages: 225-241

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    Handle: RePEc:kap:jculte:v:24:y:2000:i:3:p:225-241

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    Web page: http://www.springerlink.com/link.asp?id=100284

    Related research

    Keywords: business objectives of the firm; corporate arts sponsorship;

    References

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    1. Andreoni, James, 1990. "Impure Altruism and Donations to Public Goods: A Theory of Warm-Glow Giving?," Economic Journal, Royal Economic Society, vol. 100(401), pages 464-77, June.
    2. Smith, Vincent H. & Kehoe, Michael R. & Cremer, Mary E., 1995. "The private provision of public goods: Altruism and voluntary giving," Journal of Public Economics, Elsevier, vol. 58(1), pages 107-126, September.
    3. R. A. Schwartz, 1968. "Corporate Philanthropic Contributions," Journal of Finance, American Finance Association, vol. 23(3), pages 479-497, 06.
    4. Bergstrom, Theodore & Blume, Lawrence & Varian, Hal, 1986. "On the private provision of public goods," Journal of Public Economics, Elsevier, vol. 29(1), pages 25-49, February.
    5. Sugden, Robert, 1982. "On the Economics of Philanthropy," Economic Journal, Royal Economic Society, vol. 92(366), pages 341-50, June.
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    Cited by:
    1. Björn Frank & Kurt Geppert, 2002. "Corporate Donations to the Arts: Philanthropy or Advertising?," Discussion Papers of DIW Berlin 307, DIW Berlin, German Institute for Economic Research.
    2. Karen Maas & Kellie Liket, 2011. "Talk the Walk: Measuring the Impact of Strategic Philanthropy," Journal of Business Ethics, Springer, vol. 100(3), pages 445-464, May.
    3. Julia Hiscock & David E. Hojman, 2004. "Where Have All the Flowers Gone? Coase Theorem Failures in English Summer Cultural Events: The Case of Sidmouth International Festival," Research Papers 200406, University of Liverpool Management School.
    4. Ana S. Branca & Joaquim P. Pina & Margarida Catalão-Lopes, 2012. "Corporate Giving, Competition and the Economic Cycle," Working Papers Department of Economics 2012/15, ISEG - School of Economics and Management, Department of Economics, University of Lisbon.
    5. Scherer, F. M., 2007. "Corporate Structure and the Financial Support of U.S. Symphony Orchestras," Working Paper Series rwp07-002, Harvard University, John F. Kennedy School of Government.

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