The Effect of Philanthropic Activities on Corporate Financial Performance: From the Perspectives of Charity Donation and Volunteer Service

Abstract

Company can not only make charity donation, but also carry out volunteer service to perform philanthropic responsibilities. So how do company's philanthropic activities affect its financial performance? This paper uses data of Chinese A share listed companies to investigate the effect of philanthropic activities on corporate financial performance by two-stage Heckman selection model. The results show that corporate charity donation has a positive impact on its financial performance, however volunteer service has a negative and significant on it. There are evidences show that as a rational person, companies perform philanthropic responsibilities through charity donations, which can have a better positive impact on companies.

Psychometric characteristics of individuals’ intention to engage in philanthropic activities measure: An early development and tryout

“…Research has highlighted the significance impact of corporate philanthropy and community wealth groups for society. Prior investigations have mainly focused on corporate philanthropy's impact on trade credit financing (Liao, 2020;Yang et al, 2019) and firm reputation (Brammer & Millington, 2005), with less attention to personal motivations for philanthropic involvement. To bridge this gap, a preliminary study within a broader doctoral research project analyzed factors that drive individuals to participate in philanthropy.…”