Abstract From the perspective of the motivation, this study examines whether the product market competition affects charitable contributions. Using the sample of 676 listed companies in SSE and SZSE, the results show that the impact of the degree of competition of industry on corporate charitable donations is significant. Contrary to the firm of the normal competition industries, the firm of stronger competitive industries and weaker competitive industries tend to donate less and the competition in product market and corporate charitable contributions exhibit inverted Ushaped relationship. The results also reveal the impacts of the factors of firm size, profitability, debt levels,direct contact with consumers and ownership on charitable contribution, and the findings further support the viewpoint of business motivation of corporate charitable donations.
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