Doing good Index 2022: Assessing the Health and Well being of Asia's Social Sector

This study investigates the controversial link between corporate philanthropy and firm value, examining the moderating role of corporate governance. Analyzing U.S. firms from 1996 to 2003, the research finds that CEO long-term pay positively influences this relationship, while multi-board outside directors negatively moderate it. Contrary to expectations, increased CEO tenure enhances the relationship. The findings emphasize corporate governance’s crucial moderating role in determining the financial benefits of corporate philanthropy.