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Environmental regulation and corporate philanthropy: Evidence and mechanism from China

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  • Wang, Kun
  • Yu, Naifu
  • Ma, Ying
  • Tang, Yingkai

Abstract

This study uses a sample of A-share listed companies from 2009 to 2018 to examine the impact of environmental regulation policy on corporate charitable donation behavior. The obtained empirical results indicate that increased environmental regulation intensity promotes corporate charitable donations—a result that holds true even after robustness and endogeneity tests. A follow-up mechanism test verified the rationality of three theoretical hypotheses related to hypocrisy, slack resource adjustment, and compliance costs, which formed the basis on which the main hypothesis in this paper was developed. This paper expands the field of research on the boundary between the internal motivation for and external function of corporate social responsibility.

Suggested Citation

  • Wang, Kun & Yu, Naifu & Ma, Ying & Tang, Yingkai, 2023. "Environmental regulation and corporate philanthropy: Evidence and mechanism from China," Research in International Business and Finance, Elsevier, vol. 66(C).
    • Handle: RePEc:eee:riibaf:v:66:y:2023:i:c:s0275531923001721
    DOI: 10.1016/j.ribaf.2023.102046
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    References listed on IDEAS

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    4. Kung, James Kai-sing & Ma, Chicheng, 2014. "Can cultural norms reduce conflicts? Confucianism and peasant rebellions in Qing China," Journal of Development Economics, Elsevier, vol. 111(C), pages 132-149.
    5. 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.
    6. Bushman, Robert M. & Smith, Abbie J., 2001. "Financial accounting information and corporate governance," Journal of Accounting and Economics, Elsevier, vol. 32(1-3), pages 237-333, December.
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    Cited by:

    1. Wang, Kun & Yang, Yunfan & Ren, Jingfei & Tang, Yingkai, 2024. "Roots and rewards: Exploring the symbiotic relationship between familism and Chinese family business philanthropy," Finance Research Letters, Elsevier, vol. 70(C).
    2. Mai, Ruidong, 2025. "Digital transformation and corporate donations from the perspective of legitimacy management," Research in International Business and Finance, Elsevier, vol. 73(PB).
    3. Kiran, Madiha & Chughtai, Sumayya & Naeem, Muhammad Abubakr, 2024. "Navigating greenwashing in the G8: Insights into family-owned firms, technology innovation, and economic policy uncertainty," Research in International Business and Finance, Elsevier, vol. 71(C).

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