Original scientific paper
https://doi.org/10.1080/1331677X.2020.1802322
State ownership, institutional development, and corporate philanthropic giving: an integrated view of legitimacy–efficiency trade-offs
Jide Sun
Zhe Ji
Chen Wang
Xincheng Wang
Abstract
We explore the trade-offs between social legitimacy and economic efficiency in the context of corporate philanthropic giving
(C.P.G.). C.P.G. is viewed as a cost to seek legitimacy, which also
serves as a resource to seek efficiency. Using a longitudinal panel
data set of Chinese publicly listed firms, we examine how state
ownership and institutional development shape firms’ response to
C.P.G., and the contingent role of firm visibility and political ties.
State ownership enables firms to prioritise legitimacy over efficiency, whereas institutional development enables firms to
emphasise efficiency over legitimacy. We also suggest that the
positive effect of state ownership on C.P.G. increases for visible
firms, and the negative effect of institutional development on
C.P.G. increases for visible firms but decreases for politically connected firms. We discuss the theoretical and practical implications
of these findings
Keywords
corporate philanthropic giving (C.P.G.); state ownership; institutional development; firm visibility; political tie; legitimacy–efficiency trade-offs
Hrčak ID:
301182
URI
Publication date:
31.12.2021.
Visits: 171 *