Arbeitspapier

Corporate philanthropic practices

We study corporate philanthropy using an original database that includes firm-level data on dollar giving, giving priorities, governance, and managerial involvement in giving programs. Results provide some support for the theory that giving enhances shareholder value, as firms in the same industry tend to adopt similar giving practices and firms that advertise more intensively also give more to charity. But much of our evidence indicates that agency costs play a prominent role in explaining corporate giving. Firms with larger boards of directors are associated with significantly more cash giving and with the establishment of corporate foundations. Consistent with effective monitoring by creditors, firms with higher debt-to-value ratios give less cash to charities and are less likely to establish foundations. The empirical work considers the impact of industry regulation on giving and controls for state philanthropy laws and fiduciary responsibility laws.

Language
Englisch

Bibliographic citation
Series: Claremont Colleges Working Papers ; No. 2006-01

Classification
Wirtschaft
Mergers; Acquisitions; Restructuring; Voting; Proxy Contests; Corporate Governance
Corporate Finance and Governance: Government Policy and Regulation
Business and Securities Law
Economics of Regulation
Accounting
Subject
Corporate philanthropy : corporate governance
boards of directors
monitoring, agency costs
Wohltätigkeit
Unternehmensethik
Corporate Governance
Vorstand
Leistungskontrolle
USA

Event
Geistige Schöpfung
(who)
Brown, William O.
Helland, Eric
Smith, Janet Kiholm
Event
Veröffentlichung
(who)
Claremont McKenna College, Department of Economics
(where)
Claremont, CA
(when)
2006

Handle
Last update
10.03.2025, 11:43 AM CET

Data provider

This object is provided by:
ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. If you have any questions about the object, please contact the data provider.

Object type

  • Arbeitspapier

Associated

  • Brown, William O.
  • Helland, Eric
  • Smith, Janet Kiholm
  • Claremont McKenna College, Department of Economics

Time of origin

  • 2006

Other Objects (12)