IDEAS home Printed from https://ideas.repec.org/a/mes/emfitr/v57y2021i6p1613-1627.html
   My bibliography  Save this article

How Does the Market React to Corporate Philanthropic Behavior? —evidence from the COVID-19 Pandemic Shock

Author

Listed:
  • Lu Jolly Zhou
  • Hua Qiu
  • Xinyu Zhang

Abstract

Based on 1,130 listed Chinese firms’ charitable donation data during the COVID-19, this paper used the Event Study to examine market reactions to the epidemic and utilized OLS and Heckman two-stage models to investigate the impact of charitable donations on corporate market performance. Results show that greater corporate charitable material and medical donations result in more favorable short-term market reaction but weaker in the long term. Moreover, the low-leveraged, non-pharmaceutical, and non-SOEs can obtain better short-term performance through philanthropic donations. Findings suggest that the negative market sentiment from the COVID-19 cannot be offset by the short-term positive effects of corporate donations.

Suggested Citation

  • Lu Jolly Zhou & Hua Qiu & Xinyu Zhang, 2021. "How Does the Market React to Corporate Philanthropic Behavior? —evidence from the COVID-19 Pandemic Shock," Emerging Markets Finance and Trade, Taylor & Francis Journals, vol. 57(6), pages 1613-1627, May.
    • Handle: RePEc:mes:emfitr:v:57:y:2021:i:6:p:1613-1627
    DOI: 10.1080/1540496X.2021.1898367
    as

    Download full text from publisher

    File URL: http://hdl.handle.net/10.1080/1540496X.2021.1898367
    Download Restriction: Access to full text is restricted to subscribers.
    File URL: https://libkey.io/10.1080/1540496X.2021.1898367?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:mes:emfitr:v:57:y:2021:i:6:p:1613-1627. See general information about how to correct material in RePEc.

    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.

    We have no bibliographic references for this item. You can help adding them by using 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 RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Chris Longhurst (email available below). General contact details of provider: http://www.tandfonline.com/MREE20 .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.