Mandatory Disclosure of Corporate Philanthropy: Implications for Innovation
Frederick L. Bereskin
University of Delaware
Terry L. Campbell II
University of Delaware - Department of Finance
University of Hong Kong
August 23, 2013
Using a proprietary dataset of corporate philanthropy, we find that typically non-disclosed direct giving activities are positively associated with a higher quantity and quality of innovation, and with more collaborative and original innovation. In contrast, our results do not hold for giving by corporate foundations, which are subject to mandatory disclosure. Our results suggest that much of what are ostensibly promoted as direct giving contributions are actually research-related partnerships. The effect of direct giving on innovation is more pronounced in more opaque firms and in more competitive industries. These findings provide evidence of the distinct motives by which firms choose between largely non-disclosed direct giving and giving through corporate foundations that require mandatory disclosure, and help explain firms’ traditional resistance to mandatory disclosure of their giving programs.
Number of Pages in PDF File: 57
Keywords: Innovation, Philanthropy, Patents, Disclosureworking papers series
Date posted: July 17, 2012 ; Last revised: August 24, 2013
© 2013 Social Science Electronic Publishing, Inc. All Rights Reserved.
This page was processed by apollo8 in 0.297 seconds