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Does corporate philanthropic giving reduce analyst earnings dispersion? Evidence from Korea

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  • Hong‐Min Chun

Abstract

This study investigates the relationship between corporate philanthropic giving and analyst earnings dispersion using Korean data from 2002 to 2015. Prior studies showed that philanthropic giving enhances financial performance and investment efficiency and reduces the risk that stock prices will crash. Despite the growing importance of corporate philanthropic giving, few studies examined how corporate giving affects analyst earnings dispersion. The empirical result suggests that, first, a higher level of corporate giving is significantly and negatively associated with analyst earnings dispersion. Second, the negative association between corporate giving and analyst earnings dispersion is more pronounced in nonchaebol firms. This study might be the first attempt to use qualified donation expense data in Korea to examine the direct association between corporate giving and analyst earnings dispersion.

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  • Hong‐Min Chun, 2019. "Does corporate philanthropic giving reduce analyst earnings dispersion? Evidence from Korea," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 26(4), pages 956-964, July.
    • Handle: RePEc:wly:corsem:v:26:y:2019:i:4:p:956-964
    DOI: 10.1002/csr.1735
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    Cited by:

    1. Acar Berkan & Becchetti Leonardo & Manfredonia Stefano, 2021. "Media coverage, corporate social irresponsibility conduct, and financial analysts' performance," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 28(5), pages 1456-1470, September.
    2. Zhi Su & Bo Yi & Linan Wang, 2022. "Is corporate philanthropy a pretext for executives' excess perk consumption? Evidence from China," Managerial and Decision Economics, John Wiley & Sons, Ltd., vol. 43(8), pages 4010-4027, December.

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