MANAGING CHARITABLE GIVING: CAUSE PORTFOLIO DIMENSIONS AND THEIR IMPACT ON STAKEHOLDER EVALUATIONS

摘要

Firms donate a substantial amount of their profit to non-profits, such as the American Red Cross, American Cancer Society, and the World Wildlife Fund. According to the Foundation Center (2010), giving of corporate foundations rose by 3.9 percent in 2008 to $4.6 billion. As charitable giving increases, firms shift their focus to the profitable management of these activities. Recent studies have highlighted the complexity of the charitable giving -performance relationship (Wang, Choi, and Li 2008; Lev, Petrovits, and Radhakrishnan 2010) and the objective of this research is to understand whether and when a firm's giving activities create value for the firm. To date, most studies focus on the impact of the amount of giving on firm value but little is known about the impact of the allocation of giving.