Disaster Relief, Inc.
We investigate the motivations and value implications of corporate philanthropy by exploiting a global sample of publicly listed firms from 45 countries that provide disaster-relief grants to affected communities. We argue that, while in general corporate philanthropy entails agency concerns, the sa...
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Institutional Knowledge at Singapore Management University
2020
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sg-smu-ink.lkcsb_research-81622023-02-08T02:34:18Z Disaster Relief, Inc. LIANG, Hao VANSTEENKISTE, Cara We investigate the motivations and value implications of corporate philanthropy by exploiting a global sample of publicly listed firms from 45 countries that provide disaster-relief grants to affected communities. We argue that, while in general corporate philanthropy entails agency concerns, the saliency of large, attention-grabbing natural disasters amplifies the strategic benefits of donating. We find that the returns from donating increase with disaster severity and become positive for firms that rely more on reputation and social image. Returns are also higher for countries with low government relief support, for medium-sized donations, and for in-kind donations. Overall, our results highlight the strategic role of corporate philanthropy, which can lead to net increases in firm value and societal welfare if the strategic benefits of donating are sufficiently large. 2020-11-01T07:00:00Z text application/pdf https://ink.library.smu.edu.sg/lkcsb_research/7163 info:doi/10.2139/ssrn.3727329 https://ink.library.smu.edu.sg/context/lkcsb_research/article/8162/viewcontent/liangvansteenkistefinal.pdf http://creativecommons.org/licenses/by-nc-nd/4.0/ Research Collection Lee Kong Chian School Of Business eng Institutional Knowledge at Singapore Management University Natural disasters corporate philanthropy shareholder value strategic benefits agency costs Strategic Management Policy |
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Natural disasters corporate philanthropy shareholder value strategic benefits agency costs Strategic Management Policy LIANG, Hao VANSTEENKISTE, Cara Disaster Relief, Inc. |
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We investigate the motivations and value implications of corporate philanthropy by exploiting a global sample of publicly listed firms from 45 countries that provide disaster-relief grants to affected communities. We argue that, while in general corporate philanthropy entails agency concerns, the saliency of large, attention-grabbing natural disasters amplifies the strategic benefits of donating. We find that the returns from donating increase with disaster severity and become positive for firms that rely more on reputation and social image. Returns are also higher for countries with low government relief support, for medium-sized donations, and for in-kind donations. Overall, our results highlight the strategic role of corporate philanthropy, which can lead to net increases in firm value and societal welfare if the strategic benefits of donating are sufficiently large. |
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LIANG, Hao VANSTEENKISTE, Cara |
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LIANG, Hao VANSTEENKISTE, Cara |
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LIANG, Hao |
title |
Disaster Relief, Inc. |
title_short |
Disaster Relief, Inc. |
title_full |
Disaster Relief, Inc. |
title_fullStr |
Disaster Relief, Inc. |
title_full_unstemmed |
Disaster Relief, Inc. |
title_sort |
disaster relief, inc. |
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Institutional Knowledge at Singapore Management University |
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2020 |
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https://ink.library.smu.edu.sg/lkcsb_research/7163 https://ink.library.smu.edu.sg/context/lkcsb_research/article/8162/viewcontent/liangvansteenkistefinal.pdf |
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