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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

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

Suggested Citation

  • Mark LeClair & Kelly Gordon, 2000. "Corporate Support for Artistic and Cultural Activities: What Determines the Distribution of Corporate Giving?," Journal of Cultural Economics, Springer;The Association for Cultural Economics International, vol. 24(3), pages 225-241, August.
  • Handle: RePEc:kap:jculte:v:24:y:2000:i:3:p:225-241 DOI: 10.1023/A:1007686500896
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    References listed on IDEAS

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    1. R. A. Schwartz, 1968. "Corporate Philanthropic Contributions," Journal of Finance, American Finance Association, vol. 23(3), pages 479-497, June.
    2. Bergstrom, Theodore & Blume, Lawrence & Varian, Hal, 1986. "On the private provision of public goods," Journal of Public Economics, Elsevier, pages 25-49.
    3. 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, pages 107-126.
    4. 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 464-477, June.
    5. Sugden, Robert, 1982. "On the Economics of Philanthropy," Economic Journal, Royal Economic Society, vol. 92(366), pages 341-350, June.
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    Citations

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    Cited by:

    1. Bassi, Vittorio & Huck, Steffen & Rasul, Imran, 2017. "A note on charitable giving by corporates and aristocrats: Evidence from a field experiment," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 66(C), pages 104-111.
    2. 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.
    3. 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.
    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 - Lisbon School of Economics and Management, Department of Economics, Universidade de Lisboa.
    5. Karen Maas & Kellie Liket, 2011. "Talk the Walk: Measuring the Impact of Strategic Philanthropy," Journal of Business Ethics, Springer, pages 445-464.
    6. 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.
    7. Cowan, Adrian & Huang, Chia-Hsing & Padmanabhan, Prasad, 2016. "Why do some US manufacturing and service firms with international operations choose to give internationally whereas others opt to give only in the United States?," International Business Review, Elsevier, pages 408-418.
    8. Arthur Gautier & Anne-Claire Pache, 2015. "Research on Corporate Philanthropy: A Review and Assessment," Journal of Business Ethics, Springer, pages 343-369.
    9. repec:eee:touman:v:31:y:2010:i:2:p:240-249 is not listed on IDEAS

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