Corporate philanthropy and tunneling: Evidence from China
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Chen, J., Dong, W., Tong, J. and Zhang, F. (2016) Corporate philanthropy and tunneling: Evidence from China. Journal of Business Ethics, 150 (1). pp. 135-157.
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Abstract
This paper examines the association between corporate philanthropy and tunneling by controlling shareholders. Using a unique dataset from China, the paper finds evidence that firms donating more are less likely to tunnel. The negative association between philanthropy and tunneling is stronger when firms are faced with more severe agency conflicts, as indicated by lower largest shareholding, fewer growth opportunities, lower state ownership, and weaker product market competition. The results suggest that companies engaging in philanthropy have incentives to enhance their reputations and improve their relationships with stakeholders.
| Item Type: | Journal Article |
|---|---|
| Murdoch Affiliation: | School of Management and Governance |
| Publisher: | Kluwer Academic Publishers |
| Copyright: | © 2016 Springer Science+Business Media Dordrecht |
| URI: | http://researchrepository.murdoch.edu.au/id/eprint/30973 |
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