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Does empathy induce higher corporate prosocial behavior? Evidence from corporate giving

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  • Chourou, Lamia
  • Elmawazini, Khaled
  • Hossain, Ashrafee

Abstract

This study examines whether and how cross-country differences in trait empathy can explain differences in corporate social performance. Using an international sample of 18,433 firm-year observations across 46 countries, we find that corporate giving is positively related to the degree of empathy at the country level. Our results are robust to a battery of sensitivity analyses.

Suggested Citation

  • Chourou, Lamia & Elmawazini, Khaled & Hossain, Ashrafee, 2022. "Does empathy induce higher corporate prosocial behavior? Evidence from corporate giving," Finance Research Letters, Elsevier, vol. 50(C).
    • Handle: RePEc:eee:finlet:v:50:y:2022:i:c:s154461232200424x
    DOI: 10.1016/j.frl.2022.103219
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    References listed on IDEAS

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    1. Hao Liang & Luc Renneboog, 2017. "Corporate donations and shareholder value," Oxford Review of Economic Policy, Oxford University Press and Oxford Review of Economic Policy Limited, vol. 33(2), pages 278-316.
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    4. Brown, William O. & Helland, Eric & Smith, Janet Kiholm, 2006. "Corporate philanthropic practices," Journal of Corporate Finance, Elsevier, vol. 12(5), pages 855-877, December.
    5. Chourou, Lamia & Grira, Jocelyn & Saadi, Samir, 2021. "Does empathy matter in corporate social responsibility? Evidence from emerging markets," Emerging Markets Review, Elsevier, vol. 46(C).
    6. Arthur Gautier & Anne-Claire Pache, 2015. "Research on Corporate Philanthropy: A Review and Assessment," Journal of Business Ethics, Springer, vol. 126(3), pages 343-369, February.
    7. Ronald W. Masulis & Syed Walid Reza, 2015. "Agency Problems of Corporate Philanthropy," The Review of Financial Studies, Society for Financial Studies, vol. 28(2), pages 592-636.
    8. Holger Spamann, 2010. "The "Antidirector Rights Index" Revisited," The Review of Financial Studies, Society for Financial Studies, vol. 23(2), pages 467-486, February.
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    Cited by:

    1. 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 social performance; Corporate donation; Corporate philanthropy; Empathy;
    All these keywords.

    JEL classification:

    • G3 - Financial Economics - - Corporate Finance and Governance
    • I3 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty

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