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The benefits of doing good: a meta-analysis of corporate philanthropy business outcomes and its implications for management control

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  • Frederik Plewnia

    (Technische Universitaet Dresden)

  • Edeltraud Guenther

    (Technische Universitaet Dresden)

Abstract

Numerous studies have investigated the business benefits of corporate philanthropy (CP), which can be considered as part of a company’s belief systems. However, it remains unclear under which conditions and to what extent philanthropic activities are associated with corporate financial performance (CFP). This study sets out to shed light on the relationship between CP and CFP by means of a meta-analysis. A total of 183 effect sizes from 45 empirical studies are statistically integrated and analyzed within several subgroups. Particular attention is paid to time-lagged variable measurements that allow interpretation for causality. The general relationship between CP and CFP is found to be significantly positive. Furthermore, results reveal that CP is positively related to subsequent CFP across a wide range of different study designs, including different operationalizations of CFP and CP, different sample criteria, and the control for moderating variables. This paper goes beyond the question of if CP affects CFP and provides a status quo for a more detailed discussion on how and when CP influences CFP. Consequently, integrating research on mediating variables and adding perspectives of management control literature to the CP research field are suggested as promising avenues for future research.

Suggested Citation

  • Frederik Plewnia & Edeltraud Guenther, 2017. "The benefits of doing good: a meta-analysis of corporate philanthropy business outcomes and its implications for management control," Journal of Management Control: Zeitschrift für Planung und Unternehmenssteuerung, Springer, vol. 28(3), pages 347-376, October.
    • Handle: RePEc:spr:jmgtco:v:28:y:2017:i:3:d:10.1007_s00187-017-0252-y
    DOI: 10.1007/s00187-017-0252-y
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    2. Shuxia Zhang & Deyue Kong & Liping Xu & Ruiyu Xu, 2023. "Dual effects of corporate philanthropy on firm value: Evidence from China," Managerial and Decision Economics, John Wiley & Sons, Ltd., vol. 44(4), pages 2314-2327, June.
    3. Maria Bano & Dr. Muhammad Nawaz & Touseef Ahmad & Fatima Ejaz, 2023. "The Performance of Small and Medium Sized Enterprises (SMEs) in Punjab: A Moderating Role of Corporate Image," Bulletin of Business and Economics (BBE), Research Foundation for Humanity (RFH), vol. 12(3), pages 650-666.
    4. Wenwen Zhao & Zhe Zhang, 2020. "How and When Does Corporate Giving Lead to Getting? An Investigation of the Relationship Between Corporate Philanthropy and Relative Competitive Performance from a Micro-process Perspective," Journal of Business Ethics, Springer, vol. 166(2), pages 425-440, October.
    5. Peter Kotzian, 2023. "Carrots or sticks? Inferring motives of corporate CSR Engagement from empirical data," Review of Managerial Science, Springer, vol. 17(8), pages 2921-2943, November.
    6. Gianecchini, Martina, 2020. "Strategies and determinants of corporate support to the arts: Insights from the Italian context," European Management Journal, Elsevier, vol. 38(2), pages 308-318.
    7. Jan Endrikat & Frank Hartmann & Philipp Schreck, 2017. "Social and ethical issues in management accounting and control: an editorial," Journal of Management Control: Zeitschrift für Planung und Unternehmenssteuerung, Springer, vol. 28(3), pages 245-249, October.
    8. Shuxia Zhang & Liping Xu & Ning Liu, 2022. "Crowding‐in and crowding‐out effects of corporate philanthropy on R&D investment," Managerial and Decision Economics, John Wiley & Sons, Ltd., vol. 43(6), pages 1835-1849, September.

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    More about this item

    Keywords

    Corporate philanthropy; Corporate financial performance; Corporate giving; Corporate social responsibility; Corporate social performance; Meta-analysis;
    All these keywords.

    JEL classification:

    • M14 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - Corporate Culture; Diversity; Social Responsibility
    • M40 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Accounting - - - General

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