Corporate Philanthropy, Research Networks, and Collaborative Innovation

Financial Management, Vol. 45, Issue 1, pp. 175-206, 2016

47 Pages Posted: 17 Jul 2012 Last revised: 25 Oct 2016

See all articles by Fred Bereskin

Fred Bereskin

University of Missouri

Terry L. Campbell

University of Delaware - Department of Finance

Po-Hsuan Hsu

National Tsing Hua University - Department of Quantitative Finance; National University of Singapore (NUS) - Asian Bureau of Finance and Economic Research (ABFER)

Date Written: May 23, 2014

Abstract

Using a unique dataset of corporate philanthropy, we find that direct giving activities are positively associated with more collaborative and original innovation. In contrast, our results do not hold for corporate foundations’ contributions. Our results suggest that much of what is ostensibly promoted as philanthropy actually reflects research-related networking activities. The effect of direct giving on innovation is more pronounced in more opaque firms and more innovative and competitive industries. These findings provide evidence of the distinct motives by which firms choose between direct giving and foundation giving. This study suggests that firms can use direct philanthropy to expand firm-boundaries by developing innovation with research partners.

Keywords: Innovation, Philanthropy, Patents, Disclosure

Suggested Citation

Bereskin, Frederick L. and Campbell, Terry Lee and Hsu, Po-Hsuan, Corporate Philanthropy, Research Networks, and Collaborative Innovation (May 23, 2014). Financial Management, Vol. 45, Issue 1, pp. 175-206, 2016, Available at SSRN: https://ssrn.com/abstract=2111554 or http://dx.doi.org/10.2139/ssrn.2111554

Frederick L. Bereskin (Contact Author)

University of Missouri ( email )

Columbia, MO 65203
United States

Terry Lee Campbell

University of Delaware - Department of Finance ( email )

College of Business and Economics
Newark, DE 19716
United States

Po-Hsuan Hsu

National Tsing Hua University - Department of Quantitative Finance ( email )

101, Section 2, Kuang-Fu Road
Hsinchu, Taiwan 300
China

National University of Singapore (NUS) - Asian Bureau of Finance and Economic Research (ABFER) ( email )

BIZ 2 Storey 4, 04-05
1 Business Link
Singapore, 117592
Singapore

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