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Tax, financial and macroeconomic factors of corporate giving in the context of the Czech economy
[Daňové, finanční a makroekonomické faktory firemního dárcovství v podmínkách české ekonomiky]

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  • Marek Halada

Abstract

The willingness of companies to donate is influenced by a number of factors. This paper intended to determine to what extent the tax legislation, financial results and macroeconomic factors affect corporate donation. Correlation analyses were used to determine the strength and significance of the relationships between variables. Model was based on data from the Ministry of Finance Czech Republic for the period 2002-2019. I have found that changes in tax regulation does not have a significant impact on donations, because companies manage donor policy primarily on the basis of the result achieved. Although the relationship of donation with costs has not proven to be significant, it cannot be excluded that companies view donation primarily as a cost item similar to advertising or PR.

Suggested Citation

  • Marek Halada, 2021. "Tax, financial and macroeconomic factors of corporate giving in the context of the Czech economy [Daňové, finanční a makroekonomické faktory firemního dárcovství v podmínkách české ekonomiky]," Český finanční a účetní časopis, Prague University of Economics and Business, vol. 2021(1), pages 37-51.
    • Handle: RePEc:prg:jnlcfu:v:2021:y:2021:i:1:id:554:p:37-51
    DOI: 10.18267/j.cfuc.554
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    References listed on IDEAS

    as
    1. Tiehen, Laura, 2001. "Tax Policy and Charitable Contributions of Money," National Tax Journal, National Tax Association, vol. 54(n. 4), pages 707-23, December.
    2. Tiehen, Laura, 2001. "Tax Policy and Charitable Contributions of Money," National Tax Journal, National Tax Association;National Tax Journal, vol. 54(4), pages 707-723, December.
    3. Louis Amato & Christie Amato, 2012. "Retail Philanthropy: Firm Size, Industry, and Business Cycle," Journal of Business Ethics, Springer, vol. 107(4), pages 435-448, June.
    4. Stephen Brammer & Andrew Millington, 2005. "Profit maximisation vs. agency: an analysis of charitable giving by UK firms," Cambridge Journal of Economics, Cambridge Political Economy Society, vol. 29(4), pages 517-534, July.
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    More about this item

    Keywords

    Altruism; Corporate philantropy; Corporate social responsibility; CSR; Deductibility limits; Donating; Giving; Tax policy; Tax shelters; Altruismus; Firemní filantropie; Společenská odpovědnost firem; Odečitatelné položky; Dárcovství; Daňová politika; Daňové úlevy;
    All these keywords.

    JEL classification:

    • D21 - Microeconomics - - Production and Organizations - - - Firm Behavior: Theory
    • D64 - Microeconomics - - Welfare Economics - - - Altruism; Philanthropy; Intergenerational Transfers
    • L3 - Industrial Organization - - Nonprofit Organizations and Public Enterprise
    • M14 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - Corporate Culture; Diversity; Social Responsibility

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