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Charitable donations by China’s private enterprises

Author

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  • Gustafsson, Björn
  • Yang, Xiuna
  • Shuge, Gang
  • Jianzhong, Dai
Abstract
The number of private enterprises in China has grown rapidly, and donations from them are an important source of philanthropy in China today. This paper investigates donations made by private enterprises in 2011 using a survey of data covering all 31 provincial-level units of China. The data show that philanthropy practised by Chinese private enterprises is widespread, but the amounts of donations are unequally distributed. Furthermore, donations are positively related to a company’s profit and in most cases also to the owner’s political participation as expressed in membership in the People’s Congress (PC) as well as the Chinese People’s Political Consultative Conference (CPPCC) at different levels. Donating is also positively related to the presence of a branch of the Communist Party of China and a trade union within the firm. In contrast, there is little support for donations being related to the characteristics of the major owner of the business, such as their gender, age, previous employment experience, party membership or to the governance structure or location of the private firms.

Suggested Citation

  • Gustafsson, Björn & Yang, Xiuna & Shuge, Gang & Jianzhong, Dai, 2017. "Charitable donations by China’s private enterprises," Economic Systems, Elsevier, vol. 41(3), pages 456-469.
    • Handle: RePEc:eee:ecosys:v:41:y:2017:i:3:p:456-469
    DOI: 10.1016/j.ecosys.2016.10.007
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    References listed on IDEAS

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    1. Chen, Donghua & Jiang, Dequan & Yu, Xin, 2015. "Corporate philanthropy and bank loans in China," Pacific-Basin Finance Journal, Elsevier, vol. 35(PA), pages 402-424.
    2. Ying Chen & David Touve, 2011. "Conformity, political participation, and economic rewards: The case of Chinese private entrepreneurs," Asia Pacific Journal of Management, Springer, vol. 28(3), pages 529-553, September.
    3. Meer, Jonathan, 2011. "Brother, can you spare a dime? Peer pressure in charitable solicitation," Journal of Public Economics, Elsevier, vol. 95(7), pages 926-941.
    4. Nee, Victor & Opper, Sonja, 2012. "Capitalism from Below: Markets and Institutional Change in China," Economics Books, Harvard University Press, number 9780674050204, march.
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    Cited by:

    1. Christou, P. & Hadjielias, E. & Farmaki, A., 2019. "Reconnaissance of philanthropy," Annals of Tourism Research, Elsevier, vol. 78(C), pages 1-1.

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