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More Philanthropy, More Consistency? Examining the Impact of Corporate Charitable Donations on ESG Rating Uncertainty

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  • Li Meiyi

    (School of Business, Tianshui Normal University, Tianshui, 741000, China)

  • Gan Yufei

    (School of Economics and Management, Jiangxi Normal University, Nanchang, 330022, China)

Abstract

The variability in environmental, social, and governance (ESG) ratings poses challenges for investors and companies. Drawing on data from Chinese A-share listed firms (2015–2023), we show that corporate charitable donations (CCD) significantly reduce ESG rating uncertainty (ESGSTD), reinforced by CEO green experience, overseas education, and academic background. Robust checks confirm these findings. Corporate reputation and media attention are key mechanisms linking CCD to reduced rating inconsistency. ESG-focused investors further amplify this effect. Our results underscore the importance of strategic corporate social responsibility activities, CEO attributes, and public visibility in enhancing ESG rating consistency.

Suggested Citation

  • Li Meiyi & Gan Yufei, 2025. "More Philanthropy, More Consistency? Examining the Impact of Corporate Charitable Donations on ESG Rating Uncertainty," Economics - The Open-Access, Open-Assessment Journal, De Gruyter, vol. 19(1), pages 1-21.
    • Handle: RePEc:bpj:econoa:v:19:y:2025:i:1:p:21:n:1001
    DOI: 10.1515/econ-2025-0148
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