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Eurasian Business Review

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30.03.2022 | Regular Article

Corporate philanthropy and employee wellbeing: do types of corporate philanthropy matter?

verfasst von: Chih-Hai Yang

Erschienen in: Eurasian Business Review | Ausgabe 4/2022

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Abstract

This study examines whether corporate philanthropy, one corporate social responsibility (CSR) activity, influences employee wellbeing. Based on a panel dataset of listed companies in Taiwan, our empirical analyses obtained by using a panel data model show that engagement and charitable donations are irrelevant to employee wage packages. Dividing donation expenditures into donations to firm-related foundations and donations to unrelated recipients, donations to firm-related foundations have no influence on wage packages. By contrast, irregular and unscheduled donations, namely, donations to unrelated recipients, have a negative association with employee wage packages. The results remain the same using propensity score matching (PSM) and system generalized method of moments to conduct robustness checks. The first-stage PSM estimations on the determinants of corporate philanthropy indicate that firm characteristics such as firm size, firm age, earning performance, and stakeholders are factors influencing charitable donations.

Vorheriger Artikel Board diversity and financial statement comparability: evidence from China

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Corporate social responsibility (CSR) is a multidimensional concept consisting of economic, environmental, and social responsibility. See Carroll and Brown (2018) for a review of the evolution and development of the CSR concept. This study focuses on corporate philanthropy in which additional spending directly links business and society.

Findings regarding the CSR–firm performance and environmental responsibility–firm performance nexuses also remain contradictory. See comprehensive reviews by Bhardwaj et al. (2018) and Brekke and Pekovic (2018), respectively.

In Taiwan, firms can receive credits of up to 10% of their CSR expenditures against their payable corporate taxes incurred during the current year.

Many firms also undertake environmental responsibility activities, and those expenditures are generally capitalized (or expensed) and recorded in accounting and financial records in practice. Thus, we cannot differentiate those expenditures from total expenditures, preventing us from considering both social and environmental CSR.

Donation information is a formal statistic reported to the security authority. Specific companies may give small donations without reporting them to the security authority, implying that their donation propensity could be underestimated.

The zero value is replaced by one and then the logarithm is taken.

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Titel: Corporate philanthropy and employee wellbeing: do types of corporate philanthropy matter?
verfasst von: Chih-Hai Yang
Publikationsdatum: 30.03.2022
Verlag: Springer International Publishing
Erschienen in: Eurasian Business Review / Ausgabe 4/2022
Print ISSN: 1309-4297
Elektronische ISSN: 2147-4281
DOI: https://doi.org/10.1007/s40821-022-00211-6

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