Does Giving Lead to Getting? Evidence From Chinese Private Enterprises

Posted: 2 Dec 2009 Last revised: 16 Dec 2012

See all articles by Jun Su

Jun Su

Beijing Technology and Business University - Business School

Jia He

The Chinese University of Hong Kong (CUHK) - Department of Finance

Date Written: November 30, 2009

Abstract

Enterprise philanthropy is practiced in a very unique and rudimentary form in China. Based on a unique random survey data on 3837 Chinese private enterprises conducted in 31 provinces of China in 2006, I find the significant positive relationship between enterprise philanthropy donation and enterprise profitability, and the result supports the political and institutional power view of enterprise philanthropy in the latest development of China. Simply put, Chinese private enterprises carried out philanthropy activities to better protect property rights and nurture political connections, which in turn, leads to better enterprise profitability. The result is even stronger in institutions weaker provinces.

Keywords: donation, philanthropy, private enterprise

JEL Classification: G32, G38, M21, D21

Suggested Citation

Su, Jun and He, Jia, Does Giving Lead to Getting? Evidence From Chinese Private Enterprises (November 30, 2009). Journal of Business Ethics, Forthcoming, Available at SSRN: https://ssrn.com/abstract=1516044

Jun Su (Contact Author)

Beijing Technology and Business University - Business School ( email )

11/33, Fucheng Road
Beijing, 102488
China
68984784 (Phone)
68984784 (Fax)

HOME PAGE: http://www.btbu.edu.cn

Jia He

The Chinese University of Hong Kong (CUHK) - Department of Finance ( email )

Shatin, N.T.
Hong Kong
+882 2609 8568 (Phone)

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