Research Article
The Impact of Litigation Risk on Corporate Philanthropic Giving: Evidence from China
@INPROCEEDINGS{10.4108/eai.2-12-2022.2328860, author={Jinfeng Zhu and Lu Wei and Chunyao Wu}, title={The Impact of Litigation Risk on Corporate Philanthropic Giving: Evidence from China}, proceedings={Proceedings of the 3rd International Conference on Big Data Economy and Information Management, BDEIM 2022, December 2-3, 2022, Zhengzhou, China}, publisher={EAI}, proceedings_a={BDEIM}, year={2023}, month={6}, keywords={litigation risk; corporate philanthropy; instrumental motivation; reputational capital}, doi={10.4108/eai.2-12-2022.2328860} }- Jinfeng Zhu
Lu Wei
Chunyao Wu
Year: 2023
The Impact of Litigation Risk on Corporate Philanthropic Giving: Evidence from China
BDEIM
EAI
DOI: 10.4108/eai.2-12-2022.2328860
Abstract
Using a sample of Chinese listed companies, this paper investigates the impact of litigation risk in capital market on corporate philanthropic giving. The empirical evidence shows that the litigation risk faced by Chinese listed companies can significantly increase the level of corporate philanthropy, and the greater the litigation risk, the higher the level of corporate giving. Further findings show that this effect is only significant when the company is a defendant in a lawsuit and the lawsuit is economic-related. The results confirm the 'reputation insurance' motivation of corporate philanthropy in Chinese institutional context and provide a reference for government supervision on Chinese charitable market.
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