Shareholder reaction to corporate philanthropy after a natural disaster: an empirical exploration of the “signaling financial prospects” explanation
نویسندگان
چکیده
Corporate response to natural disaster in the forms of cash and/or in-kind donations (corporate philanthropic response, or CPDR) is a growing form corporate philanthropy. Through an event study methodology based on 1,775 firms listed Tokyo Stock Exchange, we analyze shareholder reaction CPDR announcements after 2016 Kumamoto earthquakes Japan. Controlling for possibility that most common explanations (buying goodwill and governance) are at play, our results provide empirical test little-explored explanation positive CPDR: namely, philanthropy market signal outside investors firm’s future financial prospects. We find this be significant. Of note also facts only significantly case donation (as opposed in-kind), more when announced early. Overall, align with “strategic philanthropy” view grounded resource-dependence theory. But instead typical focus non-financial stakeholders, argue can used directly influence investors.
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ژورنال
عنوان ژورنال: Asia Pacific Journal of Management
سال: 2023
ISSN: ['1572-9958', '0217-4561']
DOI: https://doi.org/10.1007/s10490-023-09876-7