nach oben

Journal of Business Ethics

Erschienen in:

01.06.2015

Political Connection, Ownership Structure, and Corporate Philanthropy in China: A Strategic-Political Perspective

verfasst von: Sihai Li, Xianzhong Song, Huiying Wu

Erschienen in: Journal of Business Ethics | Ausgabe 2/2015

Einloggen

Aktivieren Sie unsere intelligente Suche, um passende Fachinhalte oder Patente zu finden.

search-config

KI-gestützte Suche

Aus

Abstract

This paper investigates whether philanthropic giving decisions and amount of charitable giving are related to firms’ political connections and ownership type. To this end, Chinese firms listed on either the Shenzhen or Shanghai stock exchange between 2004 and 2011 are examined, where government interference in the business sector is prevalent, state ownership structure is dominant, and corporate political connections prevail. Our analyses show (1) a significant and positive relationship between political connections and the likelihood and extent of firm contributions; (2) a significant and negative relationship between state ownership and extent of firm contributions; and (3) a stronger relationship between political connections and corporate philanthropy in non-state-owned firms. These findings with regard to the relationship between corporate giving, political connections, and ownership type have important implications for understanding corporate giving behavior in China and in emerging markets in general.

Vorheriger Artikel Determinants of Social Disclosure Quality in Taiwan: An Application of Stakeholder Theory

Nächster Artikel Contextualist Inquiry into Organizational Citizenship: Promoting Recycling Across Heterogeneous Organizational Actors

Sie haben noch keine Lizenz? Dann Informieren Sie sich jetzt über unsere Produkte:

Springer Professional "Wirtschaft+Technik"

Online-Abonnement

Mit Springer Professional "Wirtschaft+Technik" erhalten Sie Zugriff auf:

über 102.000 Bücher
über 537 Zeitschriften

aus folgenden Fachgebieten:

Automobil + Motoren
Bauwesen + Immobilien
Business IT + Informatik
Elektrotechnik + Elektronik
Energie + Nachhaltigkeit
Finance + Banking
Management + Führung
Marketing + Vertrieb
Maschinenbau + Werkstoffe
Versicherung + Risiko

Jetzt Wissensvorsprung sichern!

Jetzt informieren

Springer Professional "Wirtschaft"

Online-Abonnement

Mit Springer Professional "Wirtschaft" erhalten Sie Zugriff auf:

über 67.000 Bücher
über 340 Zeitschriften

aus folgenden Fachgebieten:

Bauwesen + Immobilien
Business IT + Informatik
Finance + Banking
Management + Führung
Marketing + Vertrieb
Versicherung + Risiko

Jetzt Wissensvorsprung sichern!

Jetzt informieren

Data are available on the website: http://www.charity.gov.cn.

Data for China are from the website: http://www.charity.gov.cn; data for the United States are from the website: http://www.charitynavigator.org; and data for Australia are from the website: http://www.dss.gov.au.

The document is available on the SASAC website: http://www.sasac.gov.cn.

The document is available on the website of the SASAC of Tianjin Municipal People’s Government: http://www.tjsa.gov.cn/.

China Securities Regulatory Commission: http://www.csrc.gov.cn.

The official listed firm information-disclosure website appointed by CSRC is cninfo.com.cn.

In the 2008 tax reform, the corporate tax rate was reduced from 33 to 25 % and the limit of charitable deductions was lifted from 3 to 12 % of a firm’s taxable income.

The results are not presented, but are available upon request.

Agrawal, A., & Knoeber, C. R. (2001). Do some outside directors play a political role. Journal of Law and Economics, 44, 179.CrossRef

Aiken, L. S., & West, S. G. (1991). Multiple regression: Testing and interpreting interactions. California: Sage.

Amato, L. H., & Amato, C. H. (2007). The effects of firm size and industry on corporate giving. Journal of Business Ethics, 72(3), 229–241.CrossRef

Aronson, E., Wilson, T. D., & Akert, R. M. (2005). Social psychology (5th ed.). Upper Saddle River, NJ: Prentice Hall.

Atkinson, L., & Galaskiewicz, J. (1988). Stock ownership and company contributions to charity. Administrative Science Quarterly, 33, 82–100.CrossRef

Auten, G. E., Sieg, H., & Clotfelter, C. T. (2002). Charitable giving, income, and taxes: An analysis of panel data. The American Economic Review, 92(1), 371–382.CrossRef

Bartkus, B. R., Morris, S. A., & Seifert, B. (2002). Governance and corporate philanthropy restraining Robin hood? Business and Society, 41(3), 319–344.CrossRef

Brammer, S., & Millington, A. (2006). Firm size, organizational visibility and corporate philanthropy: An empirical analysis. Business Ethics: A European Review, 15(1), 6–18.CrossRef

Brammer, S., & Millington, A. (2008). Does it pay to be different? An analysis of the relationship between corporate social and financial performance. Strategic Management Journal, 29(12), 1325–1343.CrossRef

Brandt, L., & Li, H. (2003). Bank discrimination in transition economies: Ideology, information, or incentives? Journal of Comparative Economics, 31(3), 387–413.CrossRef

Brown, W. O., Helland, E., & Smith, J. K. (2006). Corporate philanthropic practices. Journal of Corporate Finance, 12(5), 855–877.CrossRef

Buchholtz, A. K., Amason, A. C., & Rutherford, M. A. (1999). Beyond resources the mediating effect of top management discretion and values on corporate philanthropy. Business and Society, 38(2), 167–187.CrossRef

Campbell, L., Gulas, C. S., & Gruca, T. S. (1999). Corporate giving behavior and decision-maker social consciousness. Journal of Business Ethics, 19(4), 375–383.CrossRef

Campbell, D., Moore, G., & Metzger, M. (2002). Corporate philanthropy in the UK 1985–2000 some empirical findings. Journal of Business Ethics, 39(1–2), 29–41.CrossRef

Claessens, S., Djankov, S., & Lang, L. H. (2000). The separation of ownership and control in east Asian corporations. Journal of Financial Economics, 58(1), 81–112.CrossRef

Coffey, B. S., & Wang, J. (1998). Board diversity and managerial control as predictors of corporate social performance. Journal of Business Ethics, 17(14), 1595–1603.CrossRef

Dennis, B. S., Buchholtz, A. K., & Butts, M. M. (2009). The nature of giving a theory of planned behavior examination of corporate philanthropy. Business and Society, 48(3), 360–384.CrossRef

Dickson, B. J. (2003). Red capitalists in China: The party, private entrepreneurs, and prospects for political change. Cambridge: Cambridge University Press.

Donaldson, T., & Preston, L. E. (1995). The stakeholder theory of the corporation: Concepts, evidence, and implications. Academy of Management Review, 20(1), 65–91.

Doupnik, T. S., & Perera, H. (2011). International accounting. New York: McGraw-Hill Irwin.

Eckel, C. C., & Grossman, P. J. (2003). Rebate versus matching: Does how we subsidize charitable contributions matter? Journal of Public Economics, 87(3), 681–701.CrossRef

Faccio, M. (2006). Politically connected firms. The American Economic Review, 96(1), 369–386.CrossRef

Faccio, M. (2010). Differences between politically connected and nonconnected firms: A cross-country analysis. Financial Management, 39(3), 905–928.CrossRef

Faccio, M., & Lang, L. H. (2002). The ultimate ownership of western European corporations. Journal of Financial Economics, 65(3), 365–395.CrossRef

Fan, J. P., Wong, T. J., & Zhang, T. (2007). Politically connected ceos, corporate governance, and post-IPO performance of China’s newly partially privatized firms. Journal of Financial Economics, 84(2), 330–357.CrossRef

Fisman, R. (2001). Estimating the value of political connections. The American Economic Review, 91(4), 1095–1102.CrossRef

Fonseka, M., Samarakoon, L. P., & Tian, G.-L. (2012). Equity financing capacity and stock returns: Evidence from China. Journal of International Financial Markets, Institutions and Money, 22(5), 1277–1291.CrossRef

Freeman, R. E. (2010). Strategic management: A stakeholder approach. Cambridge: Cambridge University Press.CrossRef

Fry, L. W., Keim, G. D., & Meiners, R. E. (1982). Corporate contributions: Altruistic or for-profit? Academy of Management Journal, 25(1), 94–106.CrossRef

Godfrey, P. C. (2005). The relationship between corporate philanthropy and shareholder wealth: A risk management perspective. Academy of Management Review, 30(4), 777–798.CrossRef

Greene, P., & McClelland, R. (2001). Taxes and charitable giving. National Tax Journal, 54(3), 433–453.

Hess, D., Rogovsky, N., & Dunfee, T. W. (2002). The next wave of corporate community involvement: Corporate social initiatives. California Management Review, 44(2), 110–125.CrossRef

Jia, M., & Zhang, Z. (2011). Agency costs and corporate philanthropic disaster response: The moderating role of women on two-tier boards-evidence from People’s Republic of China. The International Journal of Human Resource Management, 22(9), 2011–2031.CrossRef

Jiang, G., Yue, H., & Zhao, L. (2009). A re-examination of China’s share issue privatization. Journal of Banking and Finance, 33(12), 2322–2332.CrossRef

Johnson, S., & Mitton, T. (2003). Cronyism and capital controls: Evidence from Malaysia. Journal of Financial Economics, 67(2), 351–382.CrossRef

Jones, T. M. (1995). Instrumental stakeholder theory: A synthesis of ethics and economics. Academy of Management Review, 20(2), 404–437.

Khwaja, A. I., & Mian, A. (2005). Do lenders favor politically connected firms? Rent provision in an emerging financial market. The Quarterly Journal of Economics, 120(4), 1371–1411.CrossRef

Li, H., Meng, L., Wang, Q., & Zhou, L.-A. (2008). Political connections, financing and firm performance: Evidence from Chinese private firms. Journal of Development Economics, 87(2), 283–299.CrossRef

Li, W., & Zhang, R. (2010). Corporate social responsibility ownership structure, and political interference: Evidence from China. Journal of Business Ethics, 96, 631–645.CrossRef

Liu, Q. (2006). Corporate governance in China: Current practices, economic effects and institutional determinants. CESifo Economic Studies, 52(2), 415–453.CrossRef

Liu, G. S., & Sun, P. (2005). The class of shareholdings and its impacts on corporate performance: A case of state shareholding composition in Chinese public corporations. Corporate Governance: An International Review, 13(1), 46–59.CrossRef

Nee, V. (1992). Organizational dynamics of market transition: Hybrid forms property rights, and mixed economy in China. Administrative Science Quarterly, 37, 1–27.CrossRef

Neiheisel, S. R. (1994). Corporate strategy and the politics of goodwill. A political analysis of corporate philanthropy in America. New York: Peter Lang Publishing.

Park, S. H., & Luo, Y. (2001). Guanxi and organizational dynamics: Organizational networking in Chinese firms. Strategic Management Journal, 22(5), 455–477.CrossRef

Peng, M. W., & Heath, P. S. (1996). The growth of the firm in planned economies in transition: Institutions, organizations, and strategic choice. Academy of Management Review, 21(2), 492–528.

Saiia, D. H., Carroll, A. B., & Buchholtz, A. K. (2003). Philanthropy as strategy when corporate charity “begins at home”. Business and Society, 42(2), 169–201.CrossRef

Sánchez, C. M. (2000). Motives for corporate philanthropy in El Salvador: Altruism and political legitimacy. Journal of Business Ethics, 27(4), 363–375.CrossRef

Seifert, B., Morris, S. A., & Bartkus, B. R. (2003). Comparing big givers and small givers: Financial correlates of corporate philanthropy. Journal of Business Ethics, 45(3), 195–211.CrossRef

Seifert, B., Morris, S. A., & Bartkus, B. R. (2004). Having, giving, and getting: Slack resources, corporate philanthropy, and firm financial performance. Business and Society, 43(2), 135–161.CrossRef

Su, Y., Xu, D., & Phan, P. H. (2008). Principal–principal conflict in the governance of the Chinese public corporation. Management and Organization Review, 4(1), 17–38.CrossRef

Wang, J., & Coffey, B. S. (1992). Board composition and corporate philanthropy. Journal of Business Ethics, 11(10), 771–778.CrossRef

Wang, H., & Qian, C. (2011). Corporate philanthropy and corporate financial performance: The roles of stakeholder response and political access. Academy of Management Journal, 54(6), 1159–1181.CrossRef

Wang, Q., Wong, T.-J., & Xia, L. (2008). State ownership, the institutional environment, and auditor choice: Evidence from China. Journal of Accounting and Economics, 46(1), 112–134.CrossRef

Williams, R. J., & Barrett, J. D. (2000). Corporate philanthropy, criminal activity, and firm reputation: Is there a link? Journal of Business Ethics, 26(4), 341–350.CrossRef

Xin, K. K., & Pearce, J. L. (1996). Guanxi: Connections as substitutes for formal institutional support. Academy of Management Journal, 39(6), 1641–1658.CrossRef

Young, D. R., & Burlingame, D. (1996). Paradigm lost: Research toward a new understanding of corporate philanthropy. In D. Burlingame & D. R. Young (Eds.), Corporate philanthropy at the crossroads (pp. 158–176). Bloomington: Indiana University Press.

Zhang, R., Rezaee, Z., & Zhu, J. (2010). Corporate philanthropic disaster response and ownership type: Evidence from Chinese firms response to the Sichuan earthquake. Journal of Business Ethics, 91(1), 51–63.CrossRef

Zhou, H., & Zhu, J. Q. (2011). Jump risk and cross section of stock returns: Evidence from China’s stock market. Journal of Economics and Finance, 35(3), 309–331.CrossRef

Titel: Political Connection, Ownership Structure, and Corporate Philanthropy in China: A Strategic-Political Perspective
verfasst von: Sihai Li
Xianzhong Song
Huiying Wu
Publikationsdatum: 01.06.2015
Verlag: Springer Netherlands
Erschienen in: Journal of Business Ethics / Ausgabe 2/2015
Print ISSN: 0167-4544
Elektronische ISSN: 1573-0697
DOI: https://doi.org/10.1007/s10551-014-2167-y

Springer Professional

Abstract

Bitte loggen Sie sich ein, um Zugang zu Ihrer Lizenz zu erhalten.

Sie haben noch keine Lizenz? Dann Informieren Sie sich jetzt über unsere Produkte:

Springer Professional "Wirtschaft+Technik"

Springer Professional "Wirtschaft"

Weitere Artikel der Ausgabe 2/2015

Women on the Board and Managers’ Pay: Evidence from Spain

Disentangling the Effects of Perceived Deception and Anticipated Harm on Consumer Responses to Deceptive Advertising

Managers’ Unethical Fraudulent Financial Reporting: The Effect of Control Strength and Control Framing

Mutually Enhancing Responsibility: A Theoretical Exploration of the Interaction Mechanisms Between Individual and Corporate Moral Responsibility

Assessing the Effects of Leadership Styles on Employees’ Outcomes in International Luxury Hotels

Board Openness During an Economic Crisis

Premium Partner