Customer concentration and corporate charitable donations: Evidence from China
Journal
Managerial and Decision Economics
Journal Volume
44
Journal Issue
1
Start Page
545
End Page
561
ISSN
0143-6570
1099-1468
Date Issued
2023-01
Author(s)
DOI
10.1002/mde.3699
Abstract
This study examines the impact of customer concentration on corporate charitable donations. Drawing on stakeholder and resource dependency theories, we argue that when firms rely on a small set of customers for a significant proportion of sales revenue, they will reduce corporate charitable donations. State ownership and industry competition moderate this relationship. Using data on corporate donations from Chinese listed firms between 2009 and 2019, we find support for our hypotheses. Our study contributes to the literature on customer concentration and corporate philanthropy in emerging economies.
Publisher
Wiley
Type
journal article