Does Corporate Giving Matter in Firm Performance?
Abdul Rehman *
College of Business Administration, Liaoning Technical University, China.
Ji Cheng Jun
College of Business Administration, Liaoning Technical University, China.
*Author to whom correspondence should be addressed.
Abstract
The study aims to investigate the relationship between corporate philanthropy and stock returns. To test the relationship, we took the philanthropy behavior during COVID-19 by Chinese companies listed on the Shanghai stock market. The data for the donations were taken from companies’ websites and news website. Stock returns data were taken from China stock market and accounting research (CSMAR) database. Total sample consists of 132 companies from all sectors. By employing the linear regression, it is found that there is linear relationship between philanthropy and stock returns. This study highlights the importance of Philanthropy behavior during the time of crisis and may reduce the agency problem.
Keywords: Philanthropy behavior, COVID-19, stock returns and china.