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Does Corporate Philanthropy Increase Firm Value? The Moderating Role of Corporate Governance

1 January 1970
Academic / Journal Article
Publisher : Sage

19225

The link between corporate philanthropy and firm value has been controversial. On one hand, corporate philanthropy is often criticized as an agency cost because it may serve narrow managerial self-interests. On the other hand, corporate philanthropy may enhance firm value because it improves the relationships between firms and their stakeholders. In this study, we argue that this controversy is contingent upon whether corporate governance mechanisms can stimulate the financial benefit of corporate philanthropy. Based on a sample of U.S. firms from 1996 to 2003.

Author(s) :

Steve Sauerwald Weichieh Su

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Key topics

Corporate social responsibility

Also found in

Ethical Governance, Accountability, and Compliance

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