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Philanthropic giving,market-based performance and institutional ownership: Evidence from an emerging economy
Institution:1. Discipline of Accounting and Finance, Newcastle Business School, The University of Newcastle, Sydney, NSW 2000, Australia;2. School of Business, Torrens University, 220 Victoria Square, Adelaide, SA 5000, Australia;3. Department of Management and Human Resources, Australian Institute of Business, Adelaide, SA 5000, Australia;1. University of the West of Scotland and University of Winchester, Accounting, Finance and Law, Business School, University of the West of Scotland, Ayr Campus, Ayr KA8 0SX, United Kingdom;2. Business School, University of Winchester, Winchester SO22 4NR, United Kingdom;1. School of Business and Law, Central Queensland University, 400 Kent Street, Sydney, NSW 2000, Australia;2. School of Accountancy, Queensland University of Technology, Gardens Point Campus, 2, George Street, Brisbane, Queensland 4000, Australia;3. Department of Accounting and Corporate Governance, Macquarie University, Balaclava Road, North Ryde, NSW 2109, Australia;1. Aristotle University of Thessaloniki, Department of Economic Sciences, Division of Business Administration, 54124, Thessaloniki, Greece;2. Università Cattolica del Sacro Cuore, Department SEGESTA, Via Necchi 5, 20123, Milan, Italy;3. London School of Economics, Department of Accounting, UK;4. Department of Sport Management, University of Peloponnese, Orthias Artemidos & Plataion Str., 23100, Sparta, Greece;1. School of Economics and Statistics, Università di Milano-Bicocca, Via Bicocca degli Arcimboldi, 8, 20126, Milan, Italy;2. Department of Economics, Università di Genova, v. Vivaldi 5, 16126, Genova, Italy;3. State Street Bank Luxembourg S.C.A., 49 Avenue J.F. Kennedy, L-1855, Luxembourg
Abstract:This paper investigates the association of philanthropic giving with market-based performance and institutional ownership using data from banks in Bangladesh from 2007 to 2013. Our findings suggest that banks with a higher level of philanthropic giving achieve better performance, with a positive association also found between philanthropic giving and institutional ownership. This implies that institutional owners invest in banks that contribute more to philanthropic activities. These findings should be of interest to managers, regulators and policy makers in countries that share similar financial and socio-economic systems.
Keywords:Philanthropic giving  Corporate social responsibility  Firm performance  Institutional shareholders  Emerging economy  G38  M14  M40  M41
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