IDEAS home Printed from https://ideas.repec.org/a/wly/buseth/v32y2023i1p108-124.html
   My bibliography  Save this article

Listed peers' giving and corporate philanthropy: The motivations to imitate

Author

Listed:
  • Xia Yang
  • Xin Gu
  • Xue Yang

Abstract

The impact of industrial peers' donations on firms' charitable practices has been tested and verified in existing literatures. This paper further studies the motivations and scenarios of non‐listed companies to imitate their listed counterparts in the same industry to formulate charitable policies. Deeply rooted in institutional isomorphism theory, uncertainty and professional networks are employed as philanthropic motives for unlisted companies to mimic their listed peers. Managerial decision mechanisms and network status perceptions enhance imitation by reinforcing decision uncertainty and network effect. Institutional environment heterogeneity can amplify or reduce the imitative stimulus of managers' decision mechanisms and status perceptions. Our empirical tests are based on a unique dataset of 14,873 unlisted firms and their corresponding listed counterparts in China from 2006–2016, and use Tobit regression methods. The results show a significantly positive association between listed peers' giving and non‐listed firms' donation. The peer effects are intensified when non‐listed firms' decentralized decision‐making and higher managers' status identification are present. Furthermore, when the institutional environment changes from weak to strong, the impetus of decentralized decision‐making and status identification will be weakened. These findings contribute to the corporate philanthropy literature and facilitate the development of effective corporate charity policies and government promotion of philanthropic responsibility.

Suggested Citation

  • Xia Yang & Xin Gu & Xue Yang, 2023. "Listed peers' giving and corporate philanthropy: The motivations to imitate," Business Ethics, the Environment & Responsibility, John Wiley & Sons, Ltd., vol. 32(1), pages 108-124, January.
  • Handle: RePEc:wly:buseth:v:32:y:2023:i:1:p:108-124
    DOI: 10.1111/beer.12469
    as

    Download full text from publisher

    File URL: https://doi.org/10.1111/beer.12469
    Download Restriction: no

    File URL: https://libkey.io/10.1111/beer.12469?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:wly:buseth:v:32:y:2023:i:1:p:108-124. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Wiley Content Delivery (email available below). General contact details of provider: https://onlinelibrary.wiley.com/journal/26946424 .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.