| Article ID | Journal | Published Year | Pages | File Type |
|---|---|---|---|---|
| 11004898 | Pacific-Basin Finance Journal | 2018 | 41 Pages |
Abstract
Using panel data from China, we find a positive relationship between philanthropic engagement and investment efficiency. In addition, we find that the positive association between philanthropy and investment efficiency is stronger when the company is located in a region with better institutional environments. Our results suggest that companies engaging in philanthropic donations have incentives to enhance their reputation and/or promote their relationships with stakeholders, leading to lower agency problems and higher investment efficiency.
Related Topics
Social Sciences and Humanities
Economics, Econometrics and Finance
Economics and Econometrics
Authors
Jun Chen, Wang Dong, Jamie Yixing Tong, Feida Frank Zhang,