corporate philanthropy ownership type and financial transparency drawing on stakeholder theory and the concept of enlightened self interest we argue that firms that actively engage in corporate philanthropic giving also tend to demonstrate greater concern for investors interests by providing more transparent financial information and avoiding corporate misconduct moreover the relationships between corporate giving financial information transparency and corporate misconduct vary significantly according to the firm s ownership type which affects the fundamental motivations for corporate philanthropy in a sample of chinese publicly listed firms from the 2003 2009 period we find a positive relationship between corporate giving and financial transparency and note that the relationship is stronger for non state owned enterprises non soes we also find a significantly negative association between corporate giving and corporate misconduct for non soes but not for soes taken together these findings suggest that responsibility to both stakeholders and shareholders is a vital part of building trust and reputations in china s non soe sector

what drives corporate social performance the role of nation level institutions based on whitley s national business systems nbs institutional framework we theorize about and empirically investigate the impact of nation level institutions on firms corporate social performance csp using a sample of firms from 42 countries spanning seven years we construct an annual composite csp index for each firm based on social and environmental metrics we find that the political system followed by the labor and education system and the cultural system are the most important nbs categories of institutions that impact csp interestingly the financial system appears to have a relatively less significant impact we discuss implications for research practice and policymaking

the corporation tax elasticity of charitable donations abstract with the continued downward pressure on corporation tax rates this paper analyses the corporation tax elasticity of donations there is strong evidence of an inverted u shape relationship between corporation tax rates and donations donations are initially increasing at a decreasing rate as a function of the corporation tax rate and are maximised at a rate of 27 percent between 2014 and 2018 the uk corporation tax rate decreased from 21 percent to 19 percent our results indicate that ceteris paribus this equates to a 34 percent decrease in an average uk firm s donations as corporation tax rates continue to decline the potential revenue implications for charities are increasing in importance the evidence also supports the theory of management utility maximisation as a determinant of corporate giving

corporate social responsibility of the most highly reputed european and north american firms the objective of this article is double first to analyze using a descriptive analysis the main differences in the level and components of social behaviour between european and north american firms and second to contrast empirically using a multiple linear regression model whether the motives behind corporate social behaviour are different depending on the region or country of the firm with this aim an indicator of social behaviour termed effort in sustainability has been constructed by aggregating the firm s social effort with customers employees community and environment for a sample of the 40 european and north american companies most highly reputed in the years 2003 and 2004 the results obtained indicate that the region or country of the firm influences the level components and motivation of its social behaviour

determinants of donations in private nonprofit markets abstract we estimate the responsiveness of donations to a number of economic variables including price advertising and the availability of revenue from such other sources as government grants and program service sales utilizing a set of irs data on individual nonprofit organizations in each of seven industries including hospitals and higher education for the years 1982 1994 we find distinct overall patterns as well as notable variation across industries a nonprofit organization s fundraising expenditures are estimated to exert two countervailing effects on donations the direct advertising and information effect augments donations while the indirect effect on the price of donating has a negative effect we do not find evidence that fundraising is carried to the profit maximizing levels in some industries fundraising is substantially short of that level while in other industries it is excessive implying that the marginal return to fundraising is exceeded by the cost focusing on whether revenue from other sources affects donations to a nonprofit organization we find evidence that revenue from either government grants or from the organization s own program sales activity generally does not crowd out private donations to the contrary in most industries there are significant positive effects

effects of the price of charitable giving evidence from an online crowdfunding platform abstract a long literature has examined the effects of the price of giving that is the amount an individual must give for one dollar to accrue to the charitable activity itself on donative behavior we use data from donorschoose org an online platform linking teachers with prospective donors that are uniquely suited to addressing this question due to exogenous variation in overhead costs an increased price of giving results in a lower likelihood of a project being funded we also calculate the price elasticity of giving finding estimates between 0 8 and 2 finally we examine the effect of competition on giving and find that increased competition reduces the likelihood of a project being funded these results provide insight into the workings of the market for charitable gifts

monopolistic competition in the spirit of chamberlin a general model this paper develops a model of large group chamberlinian monopolistic competition in which 1 there are many firms producing differentiated commodities 2 each firm is negligible in that it can ignore its impact on and hence reactions from other firms 3 free entry leads to zero profit of operating firms but 4 each firm faces a downward sloping demand curve the existence of a monopolistically competitive equilibrium is established in a companion paper more particular questions such as whether the market provides too many or too few products are addressed for a special case of the model

the political economy of publicly provided private goods abstract this paper integrates two different approaches to the analysis of public provision of private goods education health care day care etc while normative public economics has established an efficiency case for such provision the commonly held political economy view has been that it is an economically inefficient phenomenon generated by the political process we establish a political economy framework which in general yields an efficient choice of distributional policy it follows that the central mechanism studied in the normative theory is equally relevant to voting models of decisions on public provision it is shown that under plausible information constraints economically efficient public provision of private goods will be part of politically rational decisions the result is established both within a median voter process and a representative democracy of political parties

the role of party reputation in the formation of policy abstract this paper shows that a party can credibly establish a platform more moderate than the ideology of its members and thereby raise the probability that the party s nominee wins the election a lame duck incumbent optimally implements his party s platform in order to maintain his party s reputation for having a moderate platform this increases the likelihood that his party retains power when candidates credibly locate themselves in policy space via this mechanism we show that if candidates are sufficiently impatient then their policies are bounded away from one another the policy convergence result is not robust

retailing public goods the economics of corporate social responsibility abstract this paper explores the feasibility and desirability of corporate social responsibility csr we identify csr with creation of public goods or curtailment of public bads using a model with profit maximizing firms the paper shows that there is a direct parallel between csr and traditional models of private provision of public goods indeed firms that use csr will produce public goods at exactly the same level as predicted by the standard voluntary contribution equilibrium for public goods we compare csr with government provision and charitable provision discussing when csr by private for profit firms could have a comparative advantage in dealing with public goods provision

demand for collective goods in private nonprofit markets can fundraising expenditures help overcome free rider behavior abstract economic theory ascribes the primary role in the provision of public goods to government this emphasis on government overlooks the role of the not for profit sector in providing collective type goods in this paper we seek to determine the factors influencing charitable contributions to private nonprofit organizations by estimating a demand function for the output of these collective good providers specifically we test the hypothesis that voluntary giving is responsive to conventional market variables such as advertising expenditures price and quality overall the results are strongly supportive

market structure and corporate charitable donations some canadian evidence for 1976 and 1981 the business of business not charity say eleemosynary its more confusing whatever as long as we don t given em any cash harv antione the buzz words of entrepreneurship in apocryphal northern tales this paper investigates the general determinants of corporate charitable donations in canada and in particular the impact of imperfectly competitive market structure we utilize a profit maximizing model and assume that charitable donations occur only if by performing an advertising public relations function they increase revenue or if by acting as a fringe benefit they result in a reduction in wage costs in this context because only firms in imperfect markets generate the rents from which donations can be made we anticipate a positive relationship between donations and a measure of imperfect competition concentration the data is a cross section sample of 38 3 and 4 digit sic manufacturing industries pooled for 1976 and 1981 the major findings are that the results are generally compatib

corporate social responsibility stock prices and tax policy we model a market in which some investors get utility from owning shares of firms that engage in corporate social responsibility csr in equilibrium investors csr considerations influence portfolio choices stock prices and csr spending we study tax policy designed to maximize total giving individual and corporate net of government tax breaks and find that its effectiveness is non monotonic in the proportion of altruistic investors with few or many altruistic investors it has little impact on giving but at intermediate levels effective tax policy intuitively relates the corporate tax rebate rate on giving and the cap on allowable tax savings

seeking legitimacy through csr institutional pressures and corporate responses of multinationals in sri lanka arguably the corporate social responsibility csr practices of multinational enterprises mnes are influenced by a wide range of both internal and external factors perhaps most critical among the exogenous forces operating on mnes are those exerted by state and other key institutional actors in host countries crucially academic research conducted to date offers little data about how mnes use their csr activities to strategically manage their relationship with those actors in order to gain legitimisation advantages in host countries this paper addresses that gap by exploring interactions between external institutional pressures and firm level csr activities which take the form of community initiatives to examine how mnes develop their legitimacy seeking policies and practices in focusing on a developing country sri lanka this paper provides valuable insights into how mnes instrumentally utilise community initiatives in a country where relationship building with governmental and other powerful non governmental actors can be vitally important for the long term viability of the business drawing on neo institutional theory and csr literature this paper examines and contributes to the embryonic but emerging debate about the instrumental and political implications of csr the evidence presented and discussed here reveals the extent to which and the reasons why mnes engage in complex legitimacy seeking relationships with sri lankan host institutions

the geography of giving the effect of corporate headquarters on local charities abstract does the presence of corporate headquarters in a city affect the incomes of local charities to address this question we combine data on the head office locations of publicly traded u s firms with information on the receipts of local charitable organizations cities like houston san jose and san francisco gained significant numbers of corporate headquarters over the past two decades while cities like chicago and los angeles lost our analysis suggests that attracting or retaining the headquarters of a publicly traded firm yields approximately 3 10 million per year in contributions to local non profits likewise each 1000 increase in the market value of the firms headquartered in a city yields 0 60 1 60 to local non profits most of the increase in charitable contributions is attributable to an effect on the number of highly compensated individuals in a city rather than through direct donations by the corporations themselves the increased private sector donations from the presence of corporate headquarters do not seem to crowd out government grants to local charities

profit maximisation vs agency an analysis of charitable giving by uk firms the charitable giving of a large sample of publicly quoted uk firms is analysed within a model that explores the profit maximisation and managerial utility enhancement motives for giving the empirical method draws a distinction between the decision to participate in giving and the determination of the amount of corporate contributions firm size and advertising intensity are found to be positively associated with the probability of participation in giving stricter corporate governance and the rate of directors remuneration are negatively related to the probability of participation among givers the rate of giving is related positively to r d intensity the rate of directors remuneration and corporate profitability and negatively to firm indebtedness

the impact of operational diversity on corporate philanthropy an empirical study of u s companies this paper investigates the impact of diversity on corporate philanthropy compared to previous studies that have considered the influence of board diversity and ceo gender on corporate philanthropy this study introduces the concept of operational diversity which is the implementation of diversity programs at management employee and supply chain levels and further it explains why operational diversity influences corporate philanthropy by using the premises of resource dependence theory second this study also investigates the influence of board diversity on corporate philanthropy third this study uses a large sample of u s firms over the period of 1991 2009 and tries to mitigate possible omitted variables and endogeneity problems that are often overlooked in previous research we demonstrate that firms with operational diversity programs are likely more dependent on a broad variety of resources and give more to community as a strategic maneuver hence operational diversity is a better indicator for predicting future corporate giving than board diversity alone however having a woman or a member of a minority as a company s chief executive officer is not sufficient to impact its charitable giving a battery of robustness tests support our conclusion and confirm that our results are not driven by a firm s general corporate social responsibility csr score gender or independence of board members or firm ownership this paper will assist researchers practitioners and other stakeholders in deepening their understanding of the predictors of corporate giving

corporate philanthropic giving advertising intensity and industry competition level this article examines whether the likelihood and amount of firm charitable giving in response to catastrophic events are related to firm advertising intensity and whether industry competition level moderates this relationship using data on chinese firms philanthropic response to the 2008 sichuan earthquake we find that firm advertising intensity is positively associated with both the probability and the amount of corporate giving the results also indicate that this positive advertising intensity philanthropic giving relationship is stronger in competitive industries and firms in competitive industries are more likely to donate this study thus provides evidence suggesting that even in the wake of catastrophic events corporate philanthropic giving is strategic

impact of international climate policies on co2 capture and storage deployment illustrated in the dutch energy system a greenhouse gas emission trading system is considered an important policy measure for the deployment of ccs at large scale however more insights are needed whether such a trading system leads to a sufficient high co2 price and stable investment environment for ccs deployment to gain more insights we combined worldscan an applied general equilibrium model for global policy analysis and markal nl uu a techno economic energy bottom up model of the dutch power generation sector and co2 intensive industry worldscan results show that in 2020 co2 prices may vary between 20 tco2 in a grand coalition scenario in which all countries accept greenhouse gas targets from 2020 to 47 tco2 in an impasse scenario in which eu 27 continues its one sided emission trading system without the possibility to use the clean development mechanism markal nl uu model results show that an emission trading system in combination with uncertainty does not advance the application of ccs in an early stage the rates at which different co2 abatement technologies including ccs develop are less crucial for introduction of ccs than the co2 price development and the combination of biomass co firing and ccs seems an important option to realise deep co2 emission reductions

excusing selfishness in charitable giving the role of risk decisions involving charitable giving often occur under the shadow of risk a common finding is that potential donors give less when there is greater risk that their donation will have less impact while this behaviour could be fully rationalized by standard economic models this article shows that an additional mechanism is relevant the use of risk as an excuse not to give in a laboratory study participants evaluate risky payoffs for themselves and risky payoffs for a charity when their decisions do not involve tradeoffs between money for themselves and the charity they respond very similarly to self risk and charity risk by contrast when their decisions force tradeoffs between money for themselves and the charity participants act more averse to charity risk and less averse to self risk these altered responses to risk bias participants towards choosing payoffs for themselves more often consistent with excuse driven responses to risk additional results support the existence of excuse driven types

do political connections buffer firms from or bind firms to the government a study of corporate charitable donations of chinese firms do political connections buffer firms from or bind firms to the government to examine this theoretical puzzle we distinguish two types of managerial political connections ascribed and achieved

a model of political equilibrium in a representative democracy abstract this paper studies political equilibrium in a two party representative democracy in which the political parties are policy motivated and voters trade off their policy preferences against their party identity it is shown that the parties will in general adopt differing policy positions in equilibrium and that under certain qualifications the winning policy will lie between the more popular party s preferred policy and a certain utilitarian optimum the winning policy will be closer to this utilitarian optimum the less biased the electorate is in terms of party identification

a downsian spatial model with party activism a unidimensional spatial model is proposed in this article although its formal structure parallels the spatial model of electoral competition this model examines the decisions of individuals as they choose whether or not to become activists in one of two political parties an individual calculus of participation is developed that is similar to the spatial interpretation of the calculus of voting this calculus is then generalized by examining conditions that may hold for aggregate activism probabilities and the relationship between the two forms is investigated some results are then presented which concern the distributions of activists in the two parties these results in general conform to the existence of party cleavages in which there are two stable equilibrium distributions of activists such that the two parties activists are relatively cohesive internally and relatively distinctive externally finally some suggestions are offered about how this model can be combined with the spatial model of candidate competition to provide a more complete model of elections

an expanded approach to analyzing policy minded candidates a random pivot model is used to expand the theory of policy minded candidates previous results wittman 1977 1983 cox 1984 hansson and stuart 1984 are derived under weaker assumptions new results about candidate strategies in multiple elections are also obtained the thrust of these results supports calvert s 1985 finding that office seeking and policy mindedness are countervailing forces in election contests

dynamic parties and social turnout an agent based model1 the authors develop an agent based model of dynamic parties with social turnout built upon developments in different fields within social science this model yields significant turnout divergent platforms and numerous results consistent with the rational calculus of voting model and the empirical literature on social turnout in a simplified version of the model the authors show how a local imitation structure inherently yields dynamics that encourage positive turnout the model also generates new hypotheses about the importance of social networks and citizen party interactions

an investigation into the givings by large corporate donors to uk charities 1979 86 this paper the first study of its kind to date carried out for the uk is concerned with the scale and determinants of charitable givings by large corporate donors in the uk the investigation is carried out using pooled information on 53 companies over the 8 years from 1979 to 1986 during which period the rate of corporation tax fell from 52 to 35 a result of particular interest is that contributions were related positively to the rate of tax

hybrid modelling of long term carbon reduction scenarios for the uk this paper summarizes the development of a new hybrid markal macro m m energy system model for the uk this hybrid model maintains the technological and sectoral detail of a bottom up optimisation approach with aggregated energy demand endogeneity and gdp impacts from a single sector neoclassical growth model the uk m m model was developed for underpinning analysis of the uk s groundbreaking mandatory long term 60 carbon dioxide co2 emissions reduction target hybrid modelling illustrates that long term uk co2 emission reductions are feasible however there are endemic uncertainties notably a trade off between behavioural and technological decarbonisation options with resultant energy system impacts in the requirements for zero carbon electricity uk m m model sensitivity runs further illustrate the range of energy system interactions including the deployment of the uk s limited co2 storage capacity alternate timing of power vs transport sectoral reductions the relative ease of switching between electricity generation portfolios and substitution opportunities between natural gas and coal the macro economic cost impacts range from 0 3 to 1 5 reduction in uk gdp by 2050 with higher cost estimates strongly influenced by pessimistic assessments of future low carbon technologies however cost impacts from the uk m m model are likely to be in the lower range for stringent co2 reduction pathways as the simplicity of the reduced form macro linkage omits competitiveness and transitional impacts on the uk economy c 2008 elsevier b v all rights reserved

majority rule and election models abstract this paper surveys the theoretical work that has been done on majority rule and economic models of elections section i provides an overview of the topic section 2 reviews the most important results that have been obtained about majority rule as an abstract collective choice rule section 3 identifies some alternative inferences that can be made from those results section 4 covers some models that include additional features that are present in political institutions where majority rule is used section 5 concentrates on some alternative election models and equilibrium concepts section 6 focuses on election models with abstentions and or candidate uncertainty about voter behaviour section 7 compares and contrasts models where candidates are certain about what the voters choices will be contingent upon about the choices made by the candidates and models where they are uncertain about those choices section 8 closes the survey by identifying some emerging areas of research

trends and determinants of corporate non financial disclosure in greece an increasing number of business organizations around the world engage in the accounting for and reporting on non financial aspects of performance mainly within the domains of social and environmental responsibility using a composite disclosure index this study investigates the status of the non financial disclosure practices of the top 100 companies operating in greece a number of determinants which potentially drive greek firms to publicly disclose such information are examined an investigation of the reporting practices of a subgroup of firms which is on the spotlight regarding their environmental performance is performed while overlapping perspectives for the greek case are outlined the analysis suggests that only a small group of leading greek firms appears to endorse a meaningful business and society dialogue as an instrument for stakeholder communication and the discharging of organizational accountability most other corporations still tend to treat such practices superficially and in an imprecise manner

technology detail in a multisector cge model transport under climate policy a set of three analytical models is used to study the imbedding of specific transport technologies within a multisector multiregion evaluation of constraints on greenhouse emissions the key parameters of a computable general equilibrium cge model are set to mimic the behavior of a model of modal splits and a market allocation markal model of household and industry transport activities in simulation mode the cge model provides key economic data to an analysis of the details of transport technology under policy restraint results focus on the penetration of new automobile technologies into the vehicle market

low emissions development pathways of the macedonian energy sector abstract in this paper markal integrated energy system model is applied to explore the impacts and opportunities for low emissions energy system development in macedonia identifying co2 emission reduction policies and the cost of taking action two scenarios with different reduction target have been examined higher ambition scenario where emissions are restricted to 10 above 1990 levels in 2021 and 2 5 in 2030 and moderate ambition scenario where emissions are restricted to 25 above 1990 levels in 2021 and 15 in 2030 in order to provide insights into the optimal timing of emission reductions both of these cases have also been run under cumulative constraints that is rather than having the specified annual targets there is a carbon budget set for 2015 2030 44 mt and 26 mt for higher and moderate ambition cases respectively reflecting the same ambition as the above cases but providing flexibility to reduce emissions in the most cost optimal way the results show that most of the co2 reductions are in the power generation sector which is not surprising as this tends to be the most carbon intensive sector the higher ambition case is considerably more expensive than the reference case with costs 1 9 higher while the increase under the moderate ambition case is 1 under a cumulative constraint the additional costs are reduced to 1 5 and 0 6 respectively highlighting the importance of the timing of action

brother can you spare a dime peer pressure in charitable solicitation abstract while the effects of peer pressure in charitable giving have been of considerable interest to social scientists there is little empirical evidence on the magnitude of these effects a correlation between giving or volunteering by one s peers and one s own giving can be driven by self selection into groups common shocks that inspire both the solicitor to ask and the individual to give or social influence using data from a university this paper analyzes whether alumni are more likely to give and give larger amounts when they are solicited by someone with whom they have social ties freshman year roommate assignments and the structure of the university s giving campaigns are used to overcome problems of selection and common shocks social ties play a strong causal role in the decision to donate and the average gift size additionally a solicitor s request is much more effective if he or she shares characteristics such as race with the alumnus being solicited

corporate philanthropy in the u k 1985 2000 some empirical findings this paper briefly reviews the theories that seek to explain the phenomenon of corporate charitable donations and then provides a review of the empirical issues that have arisen in previous studies in this area the findings of an analysis of charitable donations data from the entire u k ftse index for the years 1985 2000 are then reported these findings include the observation of a time related increase in charitable donations which is compared with an earlier study to give a 24 year history of charitable donations in the u k the findings note little responsiveness of the monetary value of charitable donations to the economic performance of firms an international comparison over time against u s trends is also reported and shows how u s corporations have traditionally been more generous than u k firms but that the trend in the u s is downwards membership of a u k based tithing club the percent club is shown to be associated with higher profit performance against non members members charitable contributions against profit are shown to be higher than the ftse mean although short of the 0 5 target figure in cash terms the paper concludes with a brief discussion of these findings in relation to the theoretical positions advanced for corporate philanthropy

providing adequate economic incentives for bioenergies with co2 capture and geological storage abstract knowing that carbon capture and storage ccs could play an important role in reducing emissions it is important to have a good understanding of this role and the importance of environmental policies to support carbon capture and geological storage from bioenergies beccs to date ccs technologies are not deployed on a commercial level and policy instruments should be used to provide incentives to firms to use these technologies to reduce pollution the aim of this paper is to compare the cost efficiency of several incentive based instruments a fossil fuel tax an emissions tax a cap and trade system and a subsidy on captured emissions needed to spur the adoption of ccs and beccs using a dynamic general equilibrium model this type of model has become the standard for assessing economy wide impacts of environmental and technological policies the study shows that beccs will be deployed only if a specific subsidy per unit of biomass emissions captured with a ccs technology is available we show also that the two most cost efficient instruments for achieving a given emissions reduction target are a specific subsidy that rewards captured emissions and a carbon tax whose revenues are recycled to subsidize beccs

corporate donations and shareholder value do corporate donations enhance shareholder wealth or reflect agency problems we address this question for a global sample of firms whereby we distinguish between charitable and political donations as well as between donations in cash and in kind we find that charitable donations are positively related to financial performance and firm value which is consistent with the value enhancement hypothesis this positive effect on firm value is stronger for cash than in kind donations in contrast political donations do not appear to enhance shareholder value but rather tend to reflect agency problems as they are higher for firms with poor internal corporate governance and strong managerial entrenchment we address endogeneity concerns by using peer firms donations as an instrument in a two stage least squares 2sls setting and by conducting a difference in difference analysis around a general election

combining bottom up and top down abstract we motivate the formulation of market equilibrium as a mixed complementarity problem which explicitly represents weak inequalities and complementarity between decision variables and equilibrium conditions the complementarity format permits an energy economy model to combine technological detail of a bottom up energy system with a second best characterization of the over all economy our primary objective is pedagogic we first lay out the complementarity features of economic equilibrium and demonstrate how we can integrate bottom up activity analysis into a top down representation of the broader economy we then provide a stylized numerical example of an integrated model within both static and dynamic settings finally we present illustrative applications to three themes figuring prominently on the energy policy agenda of many industrialized countries nuclear phase out green quotas and environmental tax reforms

subsidizing charitable giving with rebates or matching further laboratory evidence we examine two different ways to subsidize charitable giving by a rebate returning a portion of the donation to the giver or by a match adding additional donations to the giver s donation in previous experimental research we have shown that participants give more to charity under the match than under an equivalent rebate the previous within subject experimental design required participants to make a series of decisions under both types of subsidy each decision consisted of an allocation of an endowment between the subject and a charity chosen by the subject from a specified list this article examines whether that result is an artifact of the previous within subjects design subjects may have failed to fully distinguish the two types of subsidy in the current article we report results from a between subjects design where participants are required to make only one type of decision involving rebates or involving matching subsidies our results confirm previous findings

what is product differentiation really empirical research on industrial organization has failed to identify the empirical bases of product differentiation that is each seller facing an individual downward sloping demand curve two sets of conditions are theoretically sufficient one resting on complex attribute structures coupled with fixed costs the other on costs of information to guide buyers choices among brands factor analysis of observable decision variables and market patterns appears to reveal and confirm these underlying causes the estimated factors perform successfully to test hypotheses about the effects of product differentiation on the mutual sensitivity of prices of australian domestic manufactures and competing imports product differentiation is a well defined theoretical concept resting on

do suppliers applaud corporate social performance the influence of corporate social performance csp on stakeholders is one of the focal issues in corporate social responsibility csr research using data of listed companies in china this paper examines whether csr behavior in the form of charitable donations garners a positive reaction from suppliers results derived from both level and change model regressions show that superior csp makes it easier for a firm to obtain trade credit from suppliers although the effect is significant only in non state owned enterprises non soes the results are robust to various measures of csp and endogeneity tests the results support the strategic philanthropy view and apply stakeholder theory in supply chain that strategic csr can help firms to attract suppliers and consolidate cooperative relationships with them which in turn benefits the firms in terms of more trade credit financing from suppliers this paper also shows that state owned enterprises and non soes have different csr intentions and use csr to achieve strategic goals in different ways the conclusions drawn from this study provide practical guidance on csr strategy suggesting that csr activities can help a firm in transition economies to enhance its corporate image establish and consolidate the good relationship with suppliers and obtain economic benefits or achieve long term business objectives

corporate reputation and philanthropy an empirical analysis this paper analyzes the determinants of corporate reputation within a sample of large uk companies drawn from a diverse range of industries we pay particular attention to the role that philanthropic expenditures and policies may play in shaping the perceptions of companies among their stakeholders our findings highlight that companies which make higher levels of philanthropic expenditures have better reputations and that this effect varies significantly across industries given that reputational indices tend to reflect the financial performance of organizations above other factors fryxell g e and j wang 1994 journal of management 20 1 14 and that elements of the literature emphasise that discretionary aspects of social responsibility including corporate donations may not be in the financial interests of organizations e g friedman m 1970 the social responsibility of business is to increase its profits new york times magazine september 13 this is a significant finding it suggests that philanthropic expenditures may play a significant role in stakeholder management and may in particular lead to stakeholders holding more positive impressions of philanthropic corporations

imperfect duties and corporate philanthropy a kantian approach nonprofit organizations play a crucial role in society unfortunately many such organizations are chronically underfunded and struggle to meet their objectives these facts have significant implications for corporate philanthropy and kant s notion of imperfect duties under the concept of imperfect duties businesses would have wide discretion regarding which charities receive donations how much money to give and when such donations take place a perceived problem with imperfect duties is that they can lead to moral laxity that is a failure on the part of businesses to fulfill their financial obligations to nonprofit organizations this article argues the problem of moral laxity rests on a misinterpretation of kantian ethics and therefore is really not a problem at all as such we argue corporate philanthropy while an imperfect duty should be interpreted more akin to perfect duties and as a consequence moral laxity does not arise for those corporations committed to acting on the basis of the moral law more specifically firms have duty based obligations on the basis of benevolence and as good corporate citizens to help fund non profit organizations

working for the warm glow on the benefits and limits of prosocial incentives abstract we study whether using prosocial incentives where effort is tied directly to charitable contributions may lead to better performance than standard incentive schemes in a real effort task individuals indeed work harder for charity than for themselves but only when incentive stakes are low when stakes are raised effort increases when individuals work for themselves but not when they work for others and as a result the difference in provided effort disappears individuals correctly anticipate these effects choosing to work for charity at low incentives and for themselves at high incentives the results are consistent with warm glow giving and have implications for optimal incentive design

serial correlation and the fixed effects model this paper generalizes the durbin watson type statistics to test the ols residuals from the fixed effects model for serial independence also generalized are the tests proposed by sargan and bhargava for the hypothesis that the residuals form a random walk a method for efficient estimation of the parameters is also developed finally an earnings function is estimated using the michigan survey of income dynamics in order to illustrate the uses of the tests and the estimation procedures developed in this paper

corporate sponsored foundations and earnings management abstract this study examines the strategic use of corporate philanthropy programs to achieve financial reporting objectives corporate sponsored foundations allow managers to maintain stable levels of giving to charitable causes while providing substantial discretion as to the amount of contribution expense recorded on the income statement in any given period i find that firms reporting small earnings increases make income increasing discretionary foundation funding choices this result is associated with firms that have strong equity market incentives to manage earnings the evidence presented in this paper is consistent with firms using their charitable foundations as off balance sheet reserves

voluntary donations and public expenditures in a federal system proponents of the new federalism argue that nonprofit organizations and local governments will fully offset federal social service expenditure cutbacks the author analyzes this proposition as a competitive game in which donations are motivated by private and public good considerations the author characterizes the response of political economic equilibrium to exogenous changes in federal expenditures when local voters are cognizant of donor reactions partial replacement is the most likely outcome though others are possible copyright 1987 by american economic association

corporate philanthropy and productivity evidence from an online real effort experiment contributing to a social cause can be an important driver for workers in the public and nonprofit sectors as well as in firms that engage in corporate philanthropy or other corporate social responsibility policies this paper compares the effectiveness of a social incentive that takes the form of a donation received by a charity of the subject s choice to a financial incentive we find that social incentives lead to a 13 rise in productivity regardless of their form lump sum or related to performance or strength the response is strong for subjects with low initial productivity 30 whereas high productivity subjects do not respond when subjects can choose the mix of incentives half sacrifice some of their private compensation to increase social compensation with women more likely to do so than men furthermore offering subjects some discretion in choosing their own payment schemes leads to a substantial improvement in performance comparing social incentives to equally costly increases in private compensation for low productivity subjects reveals that the former are less effective in increasing productivity but the difference is small and not statistically significant data as supplemental material are available at http dx doi org 10 1287 mnsc 2014 1985 this paper was accepted by uri gneezy behavioral economics

social responsibility and incentives in the lab why do agents exert more effort when principals donate abstract we test experimentally whether and why principals charitable giving affects agents efforts we study a simple principal agent setting in the lab where a principal decides whether to donate a fixed amount to a charity and in the next step an agent chooses his effort we argue there are three potential mechanisms that can trigger a higher effort after a donation in this setting distributional concerns reciprocal altruism and shared warm glow utility we find agents choose higher efforts when principals donate with respect to the mechanisms we find evidence for reciprocal altruism and distributional concerns as drivers of agents performance reactions in the lab

dynamic formulation of a top down and bottom up merging energy policy model abstract the impact of energy policy measures is not restricted to the energy system and should therefore be analysed within an economy wide framework while keeping the essential details of the energy sector the aim of this paper is to present new developments in the field of the consistent evaluation of indicators for the sustainability assessment of energy policy measures starting from the static concept of bohringer energy econ 20 1998 233 this paper shows how the complementarity format can be used in computable general equilibrium cge modelling for a dynamic formulation of bottom up and top down approach merging models while a hybrid approach increases the credibility of cge models in energy policy analysis by replacing the energy sector generic functional forms with a bottom up activity analysis based on specific technologies the endogenous formulation of investment decisions makes an explicit description of evolving specific capital stocks and technology mixes possible both features are essential when assessing effects of policy measures that may be affected by structural change which is typically the case in the long term assessment of energy policy measures

the flypaper effect identifying areas for further research the flypaper effect literature dates back three decades it is overwhelmingly neo classical in approach attempting to improve the median voter demand model and or temper it with public choice supply side perspectives whilst this approach provided valuable early substantial analytical insights more recent papers seem to have contributed only marginally to an understanding of the flypaper effect if indeed it exists at all hence as well as providing a long overdue comprehensive review of the literature on the flypaper effect this paper identifies more productive avenues for further research

an experimental test of warm glow giving abstract this paper reports the results of an experimental test of the warm glow hypothesis a participant is presented with the opportunity to contribute from her own endowment to a charity of choice the experiment is designed so that a pure altruist has no incentive to donate the amount the designated charity will receive is preset any contribution by the participant crowds out dollar for dollar giving by the proctor we find that participants on average donated 20 of their endowments and that approximately 57 of the participants made a donation

electoral rule disproportionality and platform polarization despite common perception existing theoretical literature lacks a complete for mal argument regarding the relationship between the electoral rule disproportionality and platform polarization in this paper we build a model that incorporates the disproportionality of the electoral system in a standard downsian electoral competition setup with mainly but not necessarily purely policy motivated parties we first show that in equilibrium platform polarization is decreasing in the level of the electoral rule disproportionality we then argue that the number of parties has a positive effect on platform polarization when polarization is measured by the distance between the two most distant platforms this effect does not hold when polarization is measured by the widely used dalton index constructing a dataset covering more than 300 elections our main theoretical findings are empirically supported pointing towards the electoral rule disproportionality as a major determinant of polarization

partners in giving the crowding in effects of uk government grants abstract this study examines the determinants of voluntary donations to uk charities using empirical specifications that combine error component and simultaneous equations methods in a series of tests we identify the one way fixed effects endogenous representation for government grants as the best empirical model when this endogeneity is taken into account government grants cause significant crowding in for the full sample and the two largest cohorts price coefficients are negative and fund raising coefficients are positive religion charities are net revenue maximizers whereas other charity cohorts fund raise short of net revenue maximization

the political economy of inaction abstract this paper develops a simple model of political inaction in a two party democracy i e it shows the conditions under which both parties will prefer to live with an unsatisfactory and inefficient status quo rather than to raise an issue the risk of raising the issue to either party is the fear of ending up with the other party s policy for example by losing the electron regarded as even worse than the status quo the model shows that the problem is likely to be particularly serious the more evenly matched is political competition the more risk averse the parties the less voters trust the parties the more divided is public opinion and the more important the issue the model is illustrated with a number of examples of real world inaction e g on fiscal deficits abortion the transition to socialism and the fall of the weimar republic in general the analysis also suggests that over a range more representation of political viewpoints implies a smaller likelihood of political action so that democracy implies a tradeoff between representation and the capacity for political action

principal principal conflicts and corporate philanthropy evidence from chinese private firms the principal principal perspective suggests that controlling shareholders have excessive influence on corporate philanthropy and may direct corporate funds to charitable causes to support their personal interests analysis of a sample of chinese private firms listed on the shenzhen or shanghai stock exchange between 2004 and 2011 shows that 1 there is a significant and negative relationship between corporate giving and the share held by the largest shareholders suggesting that controlling shareholders are opportunistic in directing corporate charitable contributions 2 there is a significant and positive relationship between corporate giving and the political connections of the largest shareholders and their agents suggesting compatibility between corporate contributions and the personal interests of the controlling shareholders 3 there is a stronger negative relationship between corporate giving and the share of the company held by the largest shareholders in politically connected firms suggesting that political connections contribute to increased opportunistic corporate giving overall our study provides important evidence for the one dominant controlling shareholder phenomenon yigududa by testing and extending the principal principal framework and showing that the largest shareholders of chinese firms appear to donate to charitable causes that ultimately serve their personal interests at the expense of minority shareholders

an evaluation of alternative measures of corporate tax rates abstract this paper examines the ability of financial statement measures of average and marginal tax rates mtr to capture tax attributes utilizing firm level tax and financial data the results suggest commonly used average tax rate measures provide little insight about statutory tax burdens and may introduce substantial bias into analyses of tax incidence financial statement based proxies for mtr particularly those based on simulation methods are found to perform well in estimating current year tax rates both current year and present value mtr are found to be highly correlated with an easily constructed binary proxy of firms tax status

spatial models of political competition under plurality rule a survey of some explanations of the number of candidates and the positions they take this paper surveys work that uses spatial models of political competition to explain the number of candidates and the positions that they take in plurality rule elections

managerial contracting and corporate social responsibility abstract this paper presents a theory of corporate social responsibility in the form of the private provision of public goods and private redistribution by a firm these social expenditures are determined by a manager operating under a compensation contract chosen by shareholders in a capital market that prices social expenditures the theory incorporates three explanations for compensation systems that encompass social performance first consumers may reward the firm for its social expenditures second managers may have personal preferences for contributing to social causes and third the shareholder clientele a firm attracts may prefer social expenditures social incentives are higher powered the more consumers reward the firm and the stronger are shareholders warm glow preferences for social expenditures profit incentives are higher powered the more consumers reward the firm but are independent of shareholder preferences when consumers reward the firm for its social expenditures firms with higher ability managers have both higher operating profits and higher social expenditures when times are good so a positive correlation is predicted in bad times however the correlation is negative except for firms with very low ability managers in very bad times where the correlation is zero

corporate political donations influences from directors networks motivated by contemporary debates concerning whether directors inappropriately deploy corporate funds for corporate political donations and the limited research into managerial influence on corporate political donations we examine the impact of director influences from a network perspective using a sample of large listed australian corporations and their political party donation activity during 2000 2007 we find that both the professional and non professional networks of directors influence corporate political donations we observe these influences in relation to donations at the federal and state levels and with respect to the choice of recipient political parties

social responsiveness profitability and catastrophic events evidence on the corporate philanthropic response to 9 11 in this study we seek to determine whether catastrophic events lead to corporate charitable giving unrelated to levels of firm profitability we examine the issue relative to the corporate philanthropic response to the 9 11 terrorist attacks of 2001 based on a sample of 489 fortune 500 companies we find that differences in the extent of corporate contributions following 9 11 are positively and significantly associated with differences in firms profitability further while the degree of connection to the catastrophic event led to higher levels of giving in comparison to the contributions of less connected firms differences in the extent of philanthropy are still related to short term profitability for the more connected firms the study thus provides evidence suggesting that even in the wake of catastrophic events corporate philanthropic giving is constrained by economic concerns

using tax return data to simulate corporate marginal tax rates abstract we document that simulated corporate marginal tax rates based on financial statement data shevlin t 1990 estimating corporate marginal tax rates with asymmetric tax treatment of gains and losses the journal of the american taxation association 11 51 67 graham j 1996a debt and the marginal tax rate journal of financial economics 41 41 73 are highly correlated with simulated rates based on corporate tax return data we provide algorithms that can be used to estimate the book or tax simulated rates when they are not available we find that the simulated book marginal tax rate does a better job of explaining financial statement debt ratios than does the analogous tax return variable and discuss how the book simulated rate is likely to be an appropriate measure in settings with global long term considerations

voting competitions with interested politicians platforms do not converge to the preferences of the median voter we examine equilibrium voting strategies for elections with interested politicians facing uncertainty about voter preferences if politicians utilities are defined over the set of strategies that voters select instead of being dependent only on the probability of winning an election equilibrium strategies will diverge instead of converging to the median voter s preferences as long as politicians have different preferences we present conditions i for political compromise and ii for politicians with different utility functions to merge into parties with complete strategic agreement

clientelism and aid abstract using a model of probabilistic voting we analyze the impact of aid on the political equilibrium in the recipient country or region we consider politicians with mixed motives they are interested in promoting social welfare but also value the benefit of holding office we label as clientelistic the politician who most values the benefit of being in power we find that the impact of aid on the political equilibrium and therefore on the quality of policy in the recipient country using utilitarian social welfare as a benchmark ultimately depends on the value of the elasticity of the marginal utility of consumption when elasticity is low the expected policy outcome gets further away from the socially desirable policy set this substitution of policy quality for aid can help to explain the poor performance of aid in improving policy perhaps more surprising is the opposite case which arises for high values of elasticity of marginal utility an increase in aid tilts the equilibrium policy towards the welfare maximizing policy set

evidence on electoral accountability in the u s senate are unfaithful agents really punished many have questioned whether voters are able to hold incumbent officials electorally accountable through a retrospective voting strategy we examine u s senate elections from 1962 to 1990 in forty one states explaining which incumbents ran for reelection and their success in seeking reelection we find that an incumbent s deviation from her state party platform decreases the probability that she will run for reelection and win if she runs furthermore the electoral mechanism is found to be more efficient when voters are better informed finally we find that our divergent party platform model provides a better fit than the median voter model

policy motivation and party differences in a dynamic spatial model of party competition we present a model of party competition that produces more realistic patterns of results than those often emphasized in the literature reversing downs 1957 we assume that parties win elections in order to formulate policies rather than formulate policies in order to win elections voters are modeled first as having perfect information about candidate positions and then under conditions of uncertainty in simulation experiments we show that policy motivation and voter uncertainty can bring about persistent and predictable party differences in sequential majority rule elections as the degree of voter certainty decreases parties diverge towards their optima whereas increases in voter certainty draw parties towards cycles in which party positions vary but predictable issue stances are maintained on the average

why do corporations give to charity this paper explores whether corporate contributions should be tax dedu ctible within the more general context of an examination of the profi t and utility maximization motives driving contributions the theoret ical section develops a formal structural model of the contributions process illustrates comparative statics and derives a set of empiri cally testable hypotheses using a new source of firm data the empir ical results indicate that profit maximization is an important motive driving contributions this finding supports the current tax deducti ble status of contributions up to a seldom encoun tered ceiling and favors a reform that allows firms to treat contributions as ordinary business expenses copyright 1988 by the university of chicago

incumbency effects in political campaigns in this paper we examine two effects of incumbency first an incumbent may have an advantage in creating a favorable image in the eyes of the voters second the incumbent may have to chose a position before the challenger this second aspect of incumbency is modelled as stackelberg leadership in the model two candidates run for election by choosing a position in an ideological spectrum voters care about candidates chosen positions as well as non policy attributes of candidates which we call charisma charismata are not known when candidates choose policy positions they are only revealed on election day so that winning is not usually a certain prospect candidates care about the probability of winning but they also dislike compromising their own ideals

on the economics of philanthropy friedman says that he accepts this argument as justifying governmental action to alleviate poverty economists will be familiar with this kind of argument someone takes as a premise that a particular activity is the subject of altruistic concern by individuals he shows that if matters are left to unco ordinated private philanthropy a free rider problem will arise and then he claims that this problem can be solved by some kind of intervention by government this strategy has been used to justify many kinds of intervention including compulsory transfers of income through the tax system hochman and rodgers i969 public policy to stimulate saving and investment marglin i963 sen i967 and the subsidisation or public provision of health care arrow i963 lindsay i969 culyer i976 this whole line of argument rests on a particular theory of private philanthropy which in turn relies on three principal assumptions first there is the publicness assumption the charitable activity in question say the relief of poverty or the provision of health care is a common argument in many individuals utility functions and so is a public good in the theoretical sense samuelson i954 in some cases of private philanthropy it is indisputable that the charitable activity is a public good from which donors derive utility consider for example the case of yachtsmen contributing to the royal national lifeboat institution or potential cancer victims contributing to the cancer research campaign in other cases the assumption takes on a rather different character rich britons contribute towards famine relief in cambodia childless old age pensioners contribute towards the care of handicapped children in such cases one would have to be extremely cynical to believe that the charitable activity furthers the self interest of the donor in any significant way but one might suggest that for purely altruistic reasons the donor derives utility from knowing that less fortunate people are being made better off such an effect will be called an altruistic externality friedman along with all of the other writers quoted in the first paragraph of this paper relies on altruistic externalities to justify the publicness assumption the second assumption is that of utility maximisation each individual s decisions concerning his philanthropic