Organization and Strategy Seminar（2015-10）

Topic：Earnings Pressure and Corporate Philanthropy: The Influence of Security Analysts and Foreign Exposure

Speaker: Heli Wang,Singapore Management University

Time: Wednesday,18 November, 15:30-17:00 pm

Location: Room 214, Guanghua Building 2

Abstract:

This study examines the downward adjustment in corporate philanthropy (CP) as an organizational practice after it has been adopted by Chinese firms. Due to the dominance of market logic and relatively lack of full acceptance of social logic in business operations, CP receives quite mixed and sometimes ambiguous perceptions in the China context. Thus while some Chinese firms adopted CP practice, we expect that they revert back to the more dominant market logic by making a downward adjustment in CP when facing analysts’ pressure for higher earnings performance. Further, building on a learning perspective, we argue that firms may resist making a downward adjustment in CP, to the extent they are more exposed to the social logic and have deeper understanding about the role of CP compared to peers. Our findings, based on an analysis of manufacturing firms listed in China during the period of 2005 – 2013, demonstrate that early and persistent adopters and adopters with more sales and subsidiaries in developed institutions are less likely to made downward adjustments in CP when facing earnings pressure.

Bio:

Heli Wang is Professor in the Strategy & Organization area at Singapore Management University. She received a Ph.D. in Strategic Management from the Ohio State University. Prior to joining SMU, she was an assistant and then associate professor at Hong Kong University of Science and Technology. Her research focuses on the resource-based view of the firm, human capital theory, stakeholder theory, and corporate social responsibility.

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