<abstract xmlns="http://www.w3.org/1999/xhtml">

<p>This study investigated the relationship between political uncertainty and corporate philanthropy in emerging markets, using China as the research setting. The growth of companies in China depends largely on various national policies which are also the main drivers on Chinese economic development. Those polices are actually executed by local leaders with a certain degree of autonomy. Each leader has a personal style of policy implementation in his/her jurisdictions. Once the local leader shifts, enterprises in the region may face the risk of policy implementation changes. Leadership transitions in Chinese cities were chosen to represent political uncertainty. After a change in local government leadership, more philanthropic activities and higher charitable spending were identified for listed companies in the region. The trend was exceptionally prominent for companies with higher regulatory risks. In that regard, companies in the private sector or owned by the local government, from pollution-intensive industries, or with a considerable size were riskier. In addition, the study identified the potential of charitable giving in lessening administrative punishments for the donating companies. The research expanded the literature on political uncertainty and corporate philanthropy by illustrating the effectiveness of the former as a response to the latter.</p>
</abstract>

This study investigated the relationship between political uncertainty and corporate philanthropy in emerging markets, using China as the research setting. The growth of companies in China depends largely on various national policies which are also the main drivers on Chinese economic development. Those polices are actually executed by local leaders with a certain degree of autonomy. Each leader has a personal style of policy implementation in his/her jurisdictions. Once the local leader shifts, enterprises in the region may face the risk of policy implementation changes. Leadership transitions in Chinese cities were chosen to represent political uncertainty. After a change in local government leadership, more philanthropic activities and higher charitable spending were identified for listed companies in the region. The trend was exceptionally prominent for companies with higher regulatory risks. In that regard, companies in the private sector or owned by the local government, from pollution-intensive industries, or with a considerable size were riskier. In addition, the study identified the potential of charitable giving in lessening administrative punishments for the donating companies. The research expanded the literature on political uncertainty and corporate philanthropy by illustrating the effectiveness of the former as a response to the latter.

Political uncertainty and Corporate Philanthropy: Evidence from China

Shanghai Lixin University of Accounting and Finance

Applied Mathematics and Nonlinear Sciences

This work is licensed under the Creative Commons Attribution 4.0 International License.

{"article-title":"Political uncertainty and Corporate Philanthropy: Evidence from China"}

This study investigated the relationship between political uncertainty and corporate philanthropy in emerging markets, using China as the research setting. The...

Political uncertainty and Corporate Philanthropy: Evidence from China

Published Online: Oct 10, 2023

Page range: 3167 - 3190

Received: Jul 28, 2023

Accepted: Aug 24, 2023

DOI: https://doi.org/10.2478/amns.2023.2.01123

Keywords
Political Uncertainty, Corporate Philanthropy, Regulatory Risk, Emerging Markets

© 2023 Jing Li et al., published by Sciendo

This work is licensed under the Creative Commons Attribution 4.0 International License.

Political uncertainty and Corporate Philanthropy: Evidence from China

Published Online: Oct 10, 2023

Page range: 3167 - 3190

Received: Jul 28, 2023

Accepted: Aug 24, 2023

DOI: https://doi.org/10.2478/amns.2023.2.01123

KeywordsPolitical Uncertainty, Corporate Philanthropy, Regulatory Risk, Emerging Markets

© 2023 Jing Li et al., published by Sciendo

This work is licensed under the Creative Commons Attribution 4.0 International License.

Keywords
Political Uncertainty, Corporate Philanthropy, Regulatory Risk, Emerging Markets