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Foreign ownership and corporate philanthropy

Author

Listed:
  • Wang, Aoran
  • Luo, Xian
  • Zeng, Ying
  • Zhang, Hao

Abstract

We explore the relationship between foreign ownership and corporate philanthropy using donation data from a sample of Chinese listed companies. We manually collect ownership data on foreign investors in these companies from 2003 to 2018. We further collect data on the foreign investors’ jurisdictions of origin and find that these investors come from 39 jurisdictions. We show that foreign ownership significantly increases corporate donations. Instrumental variable regressions confirm this finding. We conclude that foreign investors inject the values of social responsibility to investees and thus increase corporate philanthropy. Our results are robust to a battery of robustness tests.

Suggested Citation

  • Wang, Aoran & Luo, Xian & Zeng, Ying & Zhang, Hao, 2022. "Foreign ownership and corporate philanthropy," Finance Research Letters, Elsevier, vol. 46(PB).
    • Handle: RePEc:eee:finlet:v:46:y:2022:i:pb:s1544612321004438
    DOI: 10.1016/j.frl.2021.102461
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    Cited by:

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    2. Qu, Shawn, 2024. "Litigation risk and corporate philanthropy: A managerial perspective analysis," Finance Research Letters, Elsevier, vol. 62(PA).

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    More about this item

    Keywords

    Corporate philanthropy; Foreign investor; Social responsibility;
    All these keywords.

    JEL classification:

    • G23 - Financial Economics - - Financial Institutions and Services - - - Non-bank Financial Institutions; Financial Instruments; Institutional Investors
    • M14 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - Corporate Culture; Diversity; Social Responsibility

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