Business Groups and Tunneling: Evidence from Corporate Charitable Contributions by Korean Companies

Cited 10 time in webofscience Cited 0 time in scopus
  • Hit : 305
  • Download : 0
This paper investigates whether corporate philanthropic decisions are associated with a firm's listing status and business group affiliation. Analyzing a large sample of public and private firms in Korea, we find that (1) public firms make more charitable contributions than private firms and (2) business group-affiliated firms make more charitable contributions than non-affiliated firms. The results suggest that public firms, owing to greater public scrutiny, and business groups, owing to higher political costs, are encouraged to make more corporate charitable contributions. Further, we find that (3) greater corporate giving by public firms than private firms is more pronounced for business group-affiliated firms, compared with non-affiliated firms. The result is consistent with business groups' strategic coordination of their affiliates' philanthropic decisions to tunnel business group resources out to controlling shareholders who hold a larger portion of private affiliates than public affiliates.
Publisher
SPRINGER
Issue Date
2019-02
Language
English
Article Type
Article
Citation

JOURNAL OF BUSINESS ETHICS, v.154, no.3, pp.643 - 666

ISSN
0167-4544
DOI
10.1007/s10551-016-3415-0
URI
http://hdl.handle.net/10203/250478
Appears in Collection
MT-Journal Papers(저널논문)
Files in This Item
There are no files associated with this item.
This item is cited by other documents in WoS
⊙ Detail Information in WoSⓡ Click to see webofscience_button
⊙ Cited 10 items in WoS Click to see citing articles in records_button

qr_code

  • mendeley

    citeulike


rss_1.0 rss_2.0 atom_1.0