Are Hedge Fund Managers’ Charitable Donations Strategic?

50 Pages Posted: 14 Dec 2015 Last revised: 13 Aug 2018

Vikas Agarwal

Georgia State University; University of Cologne - Centre for Financial Research (CFR)

Yan Lu

University of Central Florida - College of Business Administration

Sugata Ray

University of Alabama - Department of Economics, Finance and Legal Studies

Date Written: April 12, 2018

Abstract

We study whether hedge fund managers’ charitable donations are strategically made to further their business interests. We find that donations are driven by poor fund net flows and performance. Post-donation, donors’ funds experience significantly higher net flows compared to matched non-donating peers. These results are stronger for donations that are more likely to be strategic ‒ single one-off donations, donations to focal charities popular among the hedge fund community, and donations to charities that hold fundraising events catering to the hedge fund community. Taken together, these findings are consistent with strategic motivations driving at least some hedge fund donations.

Keywords: hedge funds, charitable donations, strategic giving

Suggested Citation

Agarwal, Vikas and Lu, Yan and Ray, Sugata, Are Hedge Fund Managers’ Charitable Donations Strategic? (April 12, 2018). Available at SSRN: https://ssrn.com/abstract=2703472 or http://dx.doi.org/10.2139/ssrn.2703472

Vikas Agarwal

Georgia State University ( email )

35 Broad Street,
Suite 1221
Atlanta, GA 30303-3083
United States
404-413-7326 (Phone)
404-413-7312 (Fax)

HOME PAGE: http://www.gsu.edu/~fncvaa

University of Cologne - Centre for Financial Research (CFR)

Albertus-Magnus Platz
Cologne, 50923
Germany

Yan Lu (Contact Author)

University of Central Florida - College of Business Administration ( email )

PO Box 161400
Orlando, FL 32816
United States

Sugata Ray

University of Alabama - Department of Economics, Finance and Legal Studies ( email )

P.O. Box 870244
Tuscaloosa, AL 35487
United States

Register to save articles to
your library

Register

Paper statistics

Downloads
126
rank
210,106
Abstract Views
624
PlumX