Does Giving Lead to Getting? Evidence from Chinese Private Enterprises

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 enterpri...

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Bibliographic Details
Authors: Su, Jun (Author) ; He, Jia (Author)
Format: Electronic Article
Language:English
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Published: Springer Science + Business Media B. V 2010
In: Journal of business ethics
Year: 2010, Volume: 93, Issue: 1, Pages: 73-90
Further subjects:B Political connections
B private enterprise
B Donation
B Philanthropy
B Property Rights
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Summary: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.
ISSN:1573-0697
Contains:Enthalten in: Journal of business ethics
Persistent identifiers:DOI: 10.1007/s10551-009-0183-0