Corporate philanthropy: Insights from the 2008 Wenchuan Earthquake in China
We explore the equity market impact of board announcements of corporate donations made in response to the May 12th 2008 Wenchuan earthquake in China. Our event study uses a sample of board announcements of corporate donations from Chinese A-share listed companies. We find that donor companies providing products and/or services directly to end-consumers tend to enjoy higher abnormal stock returns, thereby documenting a link between corporate social responsibility and corporate financial performance at least for some corporate citizens. In light of the empirical results, the study suggests that corporate philanthropic involvement should be treated as a differentiated type of marketing tool to obtain social reputation and publicity, as well as a relationship cultivation mechanism with local government authorities.
If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.
References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- A. Craig MacKinlay, 1997. "Event Studies in Economics and Finance," Journal of Economic Literature, American Economic Association, vol. 35(1), pages 13-39, March.
- Brown, Stephen J. & Warner, Jerold B., 1985. "Using daily stock returns : The case of event studies," Journal of Financial Economics, Elsevier, vol. 14(1), pages 3-31, March.
- Zu, Liangrong & Song, Lina, 2008.
"Determinants of Managerial Values on Corporate Social Responsibility: Evidence from China,"
8349, University Library of Munich, Germany.
- Liangrong Zu & Lina Song, 2009. "Determinants of Managerial Values on Corporate Social Responsibility: Evidence from China," Journal of Business Ethics, Springer, vol. 88(1), pages 105-117, April.
- Zu, Liangrong & Song, Lina, 2008. "Determinants of Managerial Values on Corporate Social Responsibility: Evidence from China," IZA Discussion Papers 3449, Institute for the Study of Labor (IZA).
- Ran Zhang & Zabihollah Rezaee & Jigao Zhu, 2010. "Corporate Philanthropic Disaster Response and Ownership Type: Evidence from Chinese Firms’ Response to the Sichuan Earthquake," Journal of Business Ethics, Springer, vol. 91(1), pages 51-63, January.
- Dennis Patten, 2008. "Does the Market Value Corporate Philanthropy? Evidence from the Response to the 2004 Tsunami Relief Effort," Journal of Business Ethics, Springer, vol. 81(3), pages 599-607, September.
- Strahilevitz, Michal & Myers, John G, 1998. " Donations to Charity as Purchase Incentives: How Well They Work May Depend on What You Are Trying to Sell," Journal of Consumer Research, Oxford University Press, vol. 24(4), pages 434-446, March.
- Navarro, Peter, 1988. "Why Do Corporations Give to Charity?," The Journal of Business, University of Chicago Press, vol. 61(1), pages 65-93, January.
- Kot, Hung Wan, 2011. "Corporate name changes: Price reactions and long-run performance," Pacific-Basin Finance Journal, Elsevier, vol. 19(2), pages 230-244, April.
- Alan Muller & Gail Whiteman, 2009. "Exploring the Geography of Corporate Philanthropic Disaster Response: A Study of Fortune Global 500 Firms," Journal of Business Ethics, Springer, vol. 84(4), pages 589-603, February.
- Lei, Adrian C.H. & Song, Frank M., 2011. "Connected transactions and firm value: Evidence from China-affiliated companies," Pacific-Basin Finance Journal, Elsevier, vol. 19(5), pages 470-490, November.
- Alan Muller & Gail Whiteman, 2009. "Exploring the Geography of Corporate Philanthropic Disaster Response: A Study of Fortune Global 500 Firms," Journal of Business Ethics, Springer, vol. 84(4), pages 605-605, February.
- Cheung, Yan-Leung & Jing, Lihua & Lu, Tong & Rau, P. Raghavendra & Stouraitis, Aris, 2009. "Tunneling and propping up: An analysis of related party transactions by Chinese listed companies," Pacific-Basin Finance Journal, Elsevier, vol. 17(3), pages 372-393, June.
- Huang, Wei & Jiang, Fuxiu & Liu, Zhibiao & Zhang, Min, 2011. "Agency cost, top executives' overconfidence, and investment-cash flow sensitivity -- Evidence from listed companies in China," Pacific-Basin Finance Journal, Elsevier, vol. 19(3), pages 261-277, June.
- Jun Su & Jia He, 2010. "Does Giving Lead to Getting? Evidence from Chinese Private Enterprises," Journal of Business Ethics, Springer, vol. 93(1), pages 73-90, April.
- Chen, Xuanjuan & Kim, Kenneth A. & Yao, Tong & Yu, Tong, 2010. "On the predictability of Chinese stock returns," Pacific-Basin Finance Journal, Elsevier, vol. 18(4), pages 403-425, September.
When requesting a correction, please mention this item's handle: RePEc:eee:pacfin:v:20:y:2012:i:3:p:363-377. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Shamier, Wendy)
If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.
If references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.
If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.