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Asia Pacific Journal of Management

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10-06-2019

Doing extreme by doing good

Authors: Xueyan Dong, Jingyu Gao, Sunny Li Sun, Kangtao Ye

Published in: Asia Pacific Journal of Management | Issue 1/2021

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Abstract

Firms adopting deviant strategies are generally subject to impaired legitimacy and heightened risk. Based on the legitimacy literature, we hypothesize that strategically deviant firms are motivated to engage in corporate social responsibility activities as protection from a potential legitimacy loss. Using a sample of Chinese-listed firms during the 2003–2011 period, we find that firms with deviant strategies are more likely to engage in charitable donations. In addition, the positive effect of strategic deviance on donations is alleviated when firms communicate effectively with financial analysts, and when block holders largely own these firms.

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Available only for authorised users

We searched the dataset of Web of Science (by Clarivate Analytics) and believe that our paper is the first study to identity the causal relationship between strategy deviance and donation.

Here we define “firms with more financial analysist following” as firms that followed by more financial analysist than other firms.

The U.S. data come from Giving USA 2008 (http://givinginstitute.org/giving-usa/); the China data are from the Statistics Bulletin of Civil Affairs Development (2008), published by the Ministry of Civil Affairs, China.

Charities Aid Foundation (2011), World Giving Index 2011 https://www.cafonline.org/publications/2011-publications/world-giving-index-2011.aspx.

http://www.cncf.org.cn/Public/Uploads/user/20150919/1442657103128346.pdf

These results are available upon request.

This result is available upon request.

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Title: Doing extreme by doing good
Authors: Xueyan Dong
Jingyu Gao
Sunny Li Sun
Kangtao Ye
Publication date: 10-06-2019
Publisher: Springer US
Published in: Asia Pacific Journal of Management / Issue 1/2021
Print ISSN: 0217-4561
Electronic ISSN: 1572-9958
DOI: https://doi.org/10.1007/s10490-018-9591-y

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