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Status Incentives and Corporate Giving: Evidence From China's Political Reform On Private Enterprises

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  • Zhao Chen
  • Jipeng Zhang

Abstract

In this paper, we estimate the effect of status incentives on charitable giving by exploiting a natural experiment during China's political reform in 2002 that significantly improved the status of private entrepreneurs and their enterprises. We find that exogenous changes in social, political and economic status of private entrepreneurs led to a significant increase in the corporate giving of their privately owned firms. The findings are robust when we use different samples of the data and when we control for a large set of entrepreneurs and firm characteristics in the regression analysis.

Suggested Citation

  • Zhao Chen & Jipeng Zhang, 2017. "Status Incentives and Corporate Giving: Evidence From China's Political Reform On Private Enterprises," Pacific Economic Review, Wiley Blackwell, vol. 22(5), pages 841-860, December.
  • Handle: RePEc:bla:pacecr:v:22:y:2017:i:5:p:841-860
    DOI: 10.1111/1468-0106.12134
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    Cited by:

    1. Andrea Fracasso & Kun Jiang, 2022. "The performance of private companies in China before and during the global financial crisis: firms’ characteristics and entrepreneurs’ attributes," Economic Change and Restructuring, Springer, vol. 55(2), pages 803-836, May.
    2. Cheng, Zhiming, 2022. "Communist Party branch and labour rights: Evidence from Chinese entrepreneurs," China Economic Review, Elsevier, vol. 71(C).

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