| Abstract:This paper examines the relationships between charitable contributions, both likelihood and amount, and firm characters to identify the ultimate motivates of corporate philanthropy disaster response using dataset of listed firms in China. Based on the data of Chinese firms’response to the2008Wenchuan earthquake and2010Yushu earthquake, we find the extent of corporate contributions is shaped by firms’ future profitability prospect from a strategic investment standpoint and also related to advertising intensity, firm size, firm age, geographic location, industry and ownership. Further study reveals the existence of rationality in philanthropic decision-making. Implication for researchers and practitioners are discussed. |
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