Are hedge funds' charitable donations strategic?

Arbeitspapier

We study whether hedge funds make charitable donations to further their business interests. We find that donations are driven by poor fund flows and performance. Post-donation, donor funds experience lower outflows compared to matched non-donors. One-off donations and donations to charities which hold fundraising events catering to the hedge fund community are more likely to mitigate outflows after poor performance. These findings are consistent with strategic motivations driving at least some donations. While the economics of donations initially appear quite favorable to the hedge funds, the benefits from donations are not scalable. Moreover, investors punish donors through greater redemptions if poor performance persists post-donation.

Angaben zum Objekt

• Sprache: Englisch

Verweise und Beziehungen

• Erschienen in: Series: CFR Working Paper ; No. 20-14

Klassifikation und Themen

• Klassifikation: Wirtschaft ; Altruism; Philanthropy; Intergenerational Transfers ; Pension Funds; Non-bank Financial Institutions; Financial Instruments; Institutional Investors ; Behavioral Finance: Role and Effects of Psychological, Emotional, Social, and Cognitive Factors on Decision Making in Financial Markets‡
• Thema: Hedge funds ; Philanthropy ; Trust ; Charitable Donations ; Capital Formation ; Corporate Social Responsibility (CSR)

Beteiligte, Orts- und Zeitangaben

• Ereignis: Geistige Schöpfung
• (wer): Agarwal, Vikas ; Lu, Yan ; Ray, Sugata
• Ereignis: Veröffentlichung
• (wer): University of Cologne, Centre for Financial Research (CFR)
• (wo): Cologne
• (wann): 2020

Weitere Informationen

• Handle: http://hdl.handle.net/10419/228696
• Letzte Aktualisierung: 10.03.2025, 11:44 MEZ