Drivers of discretionary firm donations in Brazil

Abstract

BSTRACTDiscretionary firm donation is usually related to the stakeholder theory and corporate social performance. Although theoretical explanations for this social behavior are pervasive in related literature, empirical modeling remains underdeveloped. We developed an explanatory structural model of discretionary firm donation using firm and industry level indicators. Unlike previous research, we estimated the explanatory power of the construct we called stakeholder orientation. Our tentative model was tested on a Brazilian sample of 101 publicly traded donor firms, using data on firm donations to social projects and to political candidates in electoral campaigns. The main results suggest that discretionary donation seems to be a strategy for managing conflicting claims in highly stakeholder oriented firms; the characteristics of the firm are more important than industry effects in explaining firm donations; and large firms, showing slack resources, and with a less concentrated ownership structure tend to engage in discretionary donation more intensively.

Philanthropic disaster relief giving as a response to institutional pressure: Evidence from China

“…Literature has found that profitability (Adams and Hardwick, 1998;Crampton and Patten, 2008;Seifert et al, 2003) and leverage (Roberts, 1992;Adams and Hardwick, 1998) are associated with corporate philanthropic giving. Profitability (ROA), as in Bandeira- de-Mello et al (2008), is measured as the "Return on Assets" in 2007. Leverage (LEVE) is measured as the ratio of total debt to the total value of assets in 2007.…”

“…Therefore, to support (or defy) institutional viewpoint of corporate philanthropy, more evidences are needed. Besides, in spite of theoretical pervasiveness, empirical research on corporate donation activities needs developing (Bandeira- de-Mello et al, 2008), especially the empirical research in developing countries.…”

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“…Entre los autores sobresale también el rol protagónico que desempeñan los investigadores Rodrigo Bandeira de Mello, coautor de cuatro artículos y Rosilene Marcon, de tres de ellos. En estos artículos resalta el estudio del caso brasileño (Bandeira de Mello et al, 2008;Bandeira de Mello y Marcon, 2005;Costa et al, 2013;Vieira Bazuchi et al, 2013). En un solo artículo se consideran otros contextos latinoamericanos (Rufín, Parada y Serra, 2008).…”

“…En la relación entre contexto y acción política se investigó sobre indicadores a nivel de la firma y del sector, para explicar las donaciones de empresas brasileñas transadas en bolsa. Cabe resaltar que entre las donaciones se incluyen tanto los aportes a proyectos sociales como a las campañas políticas (Bandeira de Mello et al, 2008).…”

Formulação e Execução de Estratégias Políticas no Setor de Etanol: Um Modelo Processual

“…Segundo, o ponto de vista considerado nos estudos internacionais é preferencialmente o das firmas de países desenvolvidos ou multinacionais que se instalam em países emergentes. Explicações sobre como firmas locais lidam com o governo local e como essa relação pode beneficiá-las estão em desenvolvimento (Bandeira-de-Mello, Marcon, & Alberton, 2008;Brey, Camilo, Marcon, & Bandeira-de-Mello, 2013;Costa, Bandeira-de-Mello, & Marcon, 2013;Fernandes, Bandeira-de-Mello, & Zanni, 2012;Lazzarini, 2011;Samuels, 2001). Apesar do avanço democrático e do fortalecimento das instituições de mercado, como os intermediários financeiros, os mercados de capitais e os marcos regulatórios, o ambiente político das firmas no Brasil continua exercendo um papel importante nas decisões estratégicas (Bandeira-de-Mello & Marcon, 2005).…”