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Media coverage, family ownership, and corporate philanthropic giving: evidence from China

Published online by Cambridge University Press:  12 August 2015

Xingqiang Du ,
Hongmei Pei ,
Yingjie Du  and
Quan Zeng
Xingqiang Du
Affiliation:
School of Management, Xiamen University, Xiamen, Fujian 361005, China
Hongmei Pei
Affiliation:
School of Management, Xiamen University, Xiamen, Fujian 361005, China
Yingjie Du*
Affiliation:
School of Management, Shanghai University, Shanghai 200444, China
Quan Zeng
Affiliation:
School of Management, Xiamen University, Xiamen, Fujian 361005, China
*
Corresponding author (Yingjie Du): [email protected]
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Abstract

Using a sample of Chinese family firms during the period of 2004–2010, we examine the influence of media coverage on corporate philanthropic giving and the moderating role of family ownership. Specifically, we document that media coverage is significantly positively associated with corporate philanthropic giving, suggesting that media coverage as an informal system plays an important role in motivating Chinese family firms to establish business ethics, shape socially responsible images, and enhance corporate philanthropy. Moreover, family ownership attenuates the positive association between media coverage and corporate philanthropic giving. Our findings are robust to a variety of sensitivity tests and are still valid after controlling for the potential endogeneity between media coverage and corporate philanthropy. Our study is one of few studies to investigate the impact of media coverage on corporate philanthropic giving in an emerging market.

Keywords

media coveragefamily ownershipcorporate philanthropic givingcorporate social responsibility (CSR)China
Type
Research Article
Information
Journal of Management & Organization , Volume 22 , Issue 2 , March 2016 , pp. 224 - 253
Copyright
Copyright © Cambridge University Press and Australian and New Zealand Academy of Management 2015 

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