Corporate support for arts is converting to a form of a marketing which demands a benefit in return, from an altruistic nature of the past philanthropy. Stakeholders like consumers, shareholders and employee are all demanding not just profit maximization but also social responsibility to companies, which leads to strategic philanthropy actions. Previous literatures showed corporate art supporting activities have positive impact on marketing aspect such as corporate image and brand attitude. Hence, companies exploit the activities as an investment. However, companies remain passive when with comes to substantial investment on art supporting. The complication arise with the realization of the performance despite of the understanding of the positive impact of corporate art supporting.
This paper illustrates the financial performance that directly correlates with the firm value. The paper performed regression analysis on corporate social responsibility and corporate financial performance using propensity score matching technique to quantitatively evaluate the investment effect of corporate art supporting. The analysis was implemented on art supporting record of companies in Korea at 2012. The result showed positive impact of supporting art on ROE, EPS and sales increase ratio at 2013. This implies that supporting art could improve financial performance of a company with suggestion on strategic philanthropy.