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Redemption of original sin? Charitable donations of privatized enterprises in China

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  • Yaya Shi
  • Yonggen Luo
  • Zhimin Wang

Abstract

We explore unethical behaviours involving original sin during the privatized process and their influence on corporate donations in China. We find that enterprises are more actively and deeply engaging in donations when they are guilty of being involved in certain types of misconduct during the privatization process, including downward earnings management, insider trading, and tunnelling, and this phenomenon has particularly significance in regions with lower levels of non-state economic development.

Suggested Citation

  • Yaya Shi & Yonggen Luo & Zhimin Wang, 2023. "Redemption of original sin? Charitable donations of privatized enterprises in China," Applied Economics Letters, Taylor & Francis Journals, vol. 30(8), pages 1107-1111, May.
    • Handle: RePEc:taf:apeclt:v:30:y:2023:i:8:p:1107-1111
    DOI: 10.1080/13504851.2022.2036680
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