Corporate philanthropy and bank loans in China

Chen, Donghua, Jiang, Dequan and Yu, Xin (2015) Corporate philanthropy and bank loans in China. Pacific Basin Finance Journal, 35 402-424. doi:10.1016/j.pacfin.2015.03.004


Author Chen, Donghua
Jiang, Dequan
Yu, Xin
Title Corporate philanthropy and bank loans in China
Journal name Pacific Basin Finance Journal   Check publisher's open access policy
ISSN 0927-538X
Publication date 2015-05-13
Year available 2015
Sub-type Article (original research)
DOI 10.1016/j.pacfin.2015.03.004
Open Access Status Not Open Access
Volume 35
Start page 402
End page 424
Total pages 23
Place of publication Amsterdam, The Netherlands
Publisher Elsevier
Collection year 2016
Language eng
Formatted abstract
This study examines the relationship between corporate philanthropy (CP) and firm access to bank loans using a sample of listed Chinese companies. We find a positive association between CP and access to bank loans, suggesting that charitable contributions provide firms with an advantage in obtaining access to external financing. This relationship is stronger for non-State-owned companies (non-SOEs) than for State-owned companies (SOEs), indicating that SOEs and non-SOEs may have different motivations for making charitable contributions. We further find that more visibility among customers enhances the positive association between CP and bank loans while more visibility among investors weakens the positive association. We also find that more religious influence weakens the positive relationship between CP and bank loans. Our findings have implications for academics and practitioners seeking to understand the positive role of CP for firms and the channels through which CP can positively affect firm performance.
Keyword Bank loans
China
Corporate philanthropy
SOEs
Q-Index Code C1
Q-Index Status Confirmed Code
Institutional Status UQ

Document type: Journal Article
Sub-type: Article (original research)
Collections: Official 2016 Collection
UQ Business School Publications
 
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