Corporate Charitable Contributions: Business Award Winners' Giving Behaviors

20 Pages Posted: 18 Jan 2016

See all articles by Choong-Yuel Yoo

Choong-Yuel Yoo

KAIST College of Business

Jinhan Pae

Korea University Business School (KUBS)

Date Written: January 2016

Abstract

We investigate corporate giving behaviors of prestigious business award winners in Korea. In particular, we examine whether firms strategically use corporate giving to enhance corporate reputation. We find that (1) award winners generally make more charitable contributions than nonwinners prior to winning awards and maintain significant charitable contributions after winning awards; (2) multiple award winners make even more charitable contributions than single‐award winners; and (3) an increase in charitable contributions does not raise the probability of winning awards in the year after the increase. The results suggest that CEOs of award‐winning firms do not use corporate giving opportunistically to enhance their status and reputation. Rather, significant charitable contributions by award winners may be indicative of a sound business strategy to maximize long‐term firm value.

Suggested Citation

Yoo, Choong-Yuel and Pae, Jinhan, Corporate Charitable Contributions: Business Award Winners' Giving Behaviors (January 2016). Business Ethics: A European Review, Vol. 25, Issue 1, pp. 25-44, 2016, Available at SSRN: https://ssrn.com/abstract=2716438 or http://dx.doi.org/10.1111/beer.12090

Choong-Yuel Yoo (Contact Author)

KAIST College of Business ( email )

85 Hoegiro, Dongdaemoon-gu
Seoul, 02455
Korea, Republic of (South Korea)

HOME PAGE: http://www.business.kaist.edu/faculty/cyoo

Jinhan Pae

Korea University Business School (KUBS) ( email )

Anam-Dong, Seongbuk-Gu
Seoul 136-701, 136701
Korea

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