Corporate Philanthropic Giving, Advertising Intensity, and Industry Competition Level

By Ran Zhang, Jigao Zhu, Heng Yue, Chunyan Zhu. 2010

308 citations recorded by the source corpus.

This article examines whether the likelihood and amount of firm charitable giving in response to catastrophic events are related to firm advertising intensity, and whether industry competition level moderates this relationship. Using data on Chinese firms’ philanthropic response to the 2008 Sichuan earthquake, we find that firm advertising intensity is positively associated with both the probability and the amount of corporate giving. The results also indicate that this positive advertising intensity-philanthropic giving relationship is stronger in competitive industries, and firms in competitive industries are more likely to donate. This study thus provides evidence suggesting that even in the wake of catastrophic events, corporate philanthropic giving is strategic.

Subfields: Organizational Behavior and Human Resource Management, Sociology and Political Science, Strategy and Management

View Paper: https://www.semanticscholar.org/paper/d1a4bac90598e069f99b13fc4b3a85f767a2dfe9

How researchers see this paper

The researchers whose trusted networks rank it highest, strongest advocate first. Every researcher gets a different order.

In Organizational Behavior and Human Resource Management

1. Liuling Liu
2. Iftekhar Hasan
3. Haizhi Wang
4. Nada Kobeissi
5. Ran Zhang
6. Xing-qiang Du

In Sociology and Political Science

1. Xing-qiang Du
2. Wei Jian
3. Yingjie Du
4. Quan Zeng
5. Wentao Feng
6. Kangtao Ye
7. Liuling Liu
8. Iftekhar Hasan

In Strategy and Management

1. Xing-qiang Du
2. Duchi Liu
3. Jian-bai Huang
4. Quan Zeng
5. Wei Jian
6. Yingjie Du
7. Kangtao Ye
8. Shangkun Xu

Citations in the corpus

• Do Lenders Value Corporate Social Responsibility? Evidence from China (2011, background): “mitigates the negative assessments and resulting sanctions by stakeholders following firms’ misconducts, making firms less vulnerable to negative events (Godfrey 2005; Peloza 2006; Zhang et al. 2010b ).”
• Corporate Social Responsibility in Developing Countries as an Emerging Field of Study (2018, unknown): “…groups (Ceha 2013; Eweje 2006; Griesse 2007a) Firm’s trade orientation/business strategy Firm’s strategy tripod (Cruz et al. 2015) Firm’s advertising intensity (Zhang et al. 2010) Firm’s level of industry competition (Muller and Kolk 2010) Firm diversification, internationalization and core…”
• Religion, the Nature of Ultimate Owner, and Corporate Philanthropic Giving: Evidence from China (2014, methodology): “…revenue in year t. (2) TOBIN’Q is defined as market value of assets over book value of assets and equals to the number of shares tradable 9 stock price at the end of year t ? the number of shares non-tradable 9 net assets per share ? total liability at the end of year t (Zhang et al. 2009, 2010).”
• Corporate social responsibility, the cost of equity capital and ownership structure: An analysis of Chinese listed firms (2015, result): “For this reason, SOEs may differ in terms of CSR and the cost of equity compared to NSOEs (Zhang et al., 2010).”
• Corporate Social Responsibility and Firm Financial Performance: The Mediating Role of Productivity (2016, background): “It is plausible that a firm may engage in CSR activities because of competition within its business segment (Zhang et al. 2010).”
• Firm Philanthropy in Small- and Medium-Sized Family Firms (2014, unknown): “Finally, unlike previous studies (e.g. Atkinson & Galaskiewicz, 1988; Galaskiewicz, 1985; Litz & Stewart, 2000; Zhang et al., 2010), our research is focused on small- and medium-sized family firms while most prior research on firm philanthropy examines larger and more established firms.”