Empirical Research on Corporate Giving and Its Competitive Advantages

Abstract:

A research was made of the data collected from 290 firms in Yangtze River delta involved in contribution from the year 2004 to 2006. The analysis and test by a structural equation modeling show that corporate giving can be reified to different kinds of characteristics, which affect the competitive advantages of firms differently. The characteristics of contribution have indirect influence on the firm’s competitive advantages by transferring social capital to firms and the competitive advantages of firms are improved. Finally, some effective policies are proposed to encourage firms to participate into philanthropy.

Key words:corporate giving; characteristics of contribution; corporate social capital; competitive advantage