China’s Charitable Foundations: Development and Policy-Related Issues

Feng, Xiaoming

doi:10.1080/10971475.2014.993221

Cited by 23 publications

(10 citation statements)

References 4 publications

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“…Under the ideology of strong state political control and strict central planning of the economy, most of the first-established foundations were public foundations funded and managed by the government. The state-dominated charity system limited the ability of charitable foundations to perform some of their philanthropic functions [6].…”

Section: Institutional Backgroundmentioning

confidence: 99%

“…Since then, corporate foundations came into being and have experienced rapid growth. The promulgation of the RAF represents a watershed in the development of China's foundation sector [6]. Corporate foundations increased at an unprecedented rate after 2008, which is the year regarded as the "prime year of China's philanthropy" because of corporate enthusiasm for charitable donations to the Wenchun Earthquake recovery.…”

Section: Institutional Backgroundmentioning

confidence: 99%

“…According to statistics provided by the China Foundation Center, by December 2016, the total number of corporate foundations reached 768 and their total net assets was about ¥19 billion, which accounts for nearly one-seventh of China's charitable foundations. However, although corporate foundations have been playing a much more important role in corporate philanthropy, they are still a novelty in China where they were almost non-existent until the Regulations on the Administration of Foundations (RAF) was issued in June 2004 [6].…”

Section: Introductionmentioning

confidence: 99%

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Corporate Hypocrisy: Role of Non-Profit Corporate Foundations in Earnings Management of For-Profit Founder Firms

Zhang

Liu

et al. 2018

Sustainability

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The purpose of this study is to examine whether for-profit firms make opportunistic use of their corporate foundations to pursue self-serving earnings objectives in China. Using data on corporate foundations and a sample of firms listed on the A-share market from 2010 to 2016, we first use the propensity score matching method to explore the effect of corporate foundations on earnings management of their founder firms. We find that the overall discretionary accruals of firms with corporate foundations are significantly higher than for those without corporate foundations. Given the ownership property with Chinese characteristics, we further find that the significant difference is driven by privately-owned firms. Then we develop a model of discretionary donation expenditures to measure the magnitude of earnings management associated with corporate foundations. We observe that firms with small profits and consecutive earnings increase record income-increasing discretionary donation expenditures. While firms that record income-decreasing discretionary donation expenditures create earnings reserves that they can use in subsequent periods to report consecutive earnings increases. The results demonstrate that the visibly ethical behavior of establishing corporate foundations does not necessarily represent the consistent embodiment of corporate social responsibility (CSR), but can be regarded as corporate hypocrisy with self-interest embedded in benevolence.

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Section: Institutional Backgroundmentioning

confidence: 99%

Section: Institutional Backgroundmentioning

confidence: 99%

Section: Introductionmentioning

confidence: 99%

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Corporate Hypocrisy: Role of Non-Profit Corporate Foundations in Earnings Management of For-Profit Founder Firms

Zhang

Liu

et al. 2018

Sustainability

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“…For example despite government legislation enacted in 2001, the legal form of 'charitable trust' remains in its infancy (Li et al 2012). In order to foster the 'good', support worthy charitable foundations of NGOs and non-profit organizations and allow them to fulfill their crucial role for the social development of China, a more favorable institutional and legal environment will be necessary (Xiaoming 2013). The Chinese Government is currently outlining and enacting a range of policies and regulations to encourage charitable donations, strengthening trust in charitable organizations and improving transparency for charitable foundations (ICNL 2014).…”

Section: The Development In Chinamentioning

confidence: 99%

Sustainable Development and CSR in China

Schmidpeter¹,

Lü²,

Stehr³

et al. 2015

CSR, Sustainability, Ethics &Amp; Governance

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“…Charitable foundations play a critical role in offering grants to charitable organizations for public services [1][2][3]. Charitable organizations include nongovernment organizations (NGOs), nonprofit organizations (NPOs), and charitable foundations, who undertake charitable activities and implement their own charitable programs [4,5].…”

Section: Introductionmentioning

confidence: 99%

Do Charitable Foundations Spend Money Where People Need It Most? A Spatial Analysis of China

Song

2018

IJGI

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Charitable foundations are a critical part of public services. However, there is a large gap between the locations and expenditures of charitable foundations and the real population needs for most nations. Three types of Chinese local charity foundations, i.e., those for poverty, education and medical assistance, are used as examples to explore the distinct gaps. The spatial distributions of local charity foundations are characterized by spatial scan statistics and spatial autocorrelation models. The local population needs of charitable assistance for poverty, education and medical services are quantified with their respective weighted proxy indexes of the current conditions. Thus, the nonlinear relationships between population needs and the expenditures of local charitable foundations are described with generalized additive models. The results show that both the participation rate and the charity expenditures of the foundations are highly clustered within a few cities where the population needs are relatively small and are furthermore rare among the other cities. The charity expenditures of local foundations are nonlinearly correlated with the current conditions of socioeconomic development, education and medical levels due to the diverse development stages of the cities. This study provides quantitative evidence for local authorities and charitable foundations to make targeted and constructive decisions to gradually reduce the distinct gaps.

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China’s Charitable Foundations: Development and Policy-Related Issues

Cited by 23 publications

References 4 publications

Corporate Hypocrisy: Role of Non-Profit Corporate Foundations in Earnings Management of For-Profit Founder Firms

Corporate Hypocrisy: Role of Non-Profit Corporate Foundations in Earnings Management of For-Profit Founder Firms

Sustainable Development and CSR in China

Do Charitable Foundations Spend Money Where People Need It Most? A Spatial Analysis of China

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