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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Main Authors: LIANG, Hao, VANSTEENKISTE, Cara
Format: text
Language:English
Published: Institutional Knowledge at Singapore Management University 2020
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Online Access: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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Institution: Singapore Management University
Language: English
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spelling 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
institution Singapore Management University
building SMU Libraries
continent Asia
country Singapore
Singapore
content_provider SMU Libraries
collection InK@SMU
language English
topic Natural disasters
corporate philanthropy
shareholder value
strategic benefits
agency costs
Strategic Management Policy
spellingShingle Natural disasters
corporate philanthropy
shareholder value
strategic benefits
agency costs
Strategic Management Policy
LIANG, Hao
VANSTEENKISTE, Cara
Disaster Relief, Inc.
description 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.
format text
author LIANG, Hao
VANSTEENKISTE, Cara
author_facet LIANG, Hao
VANSTEENKISTE, Cara
author_sort 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.
publisher Institutional Knowledge at Singapore Management University
publishDate 2020
url 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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