Chaebol Firms’ Donation Activities and Firm Values
Abstract
:1. Introduction
2. Literature Review and Hypothesis Development
3. Research Design
3.1. Measurement of Variables
3.1.1. Chaebol Firms
3.1.2. Donation Activities
3.1.3. Firm Value
3.2. Research Model
3.3. Data and Sample Selection
4. Empirical Results
5. Conclusions
Funding
Conflicts of Interest
Appendix A. ESG Rating Evaluation Criteria
Category | Division | Section |
---|---|---|
Environmental Strategy and Organization | CEO’s will |
|
Environmental strategy and policy |
| |
Environmental organization culture |
| |
Environmental organization system |
| |
Environmental Management | Goals and planning |
|
Environmental accounting |
| |
Environmental performance management |
| |
Environmental audit |
| |
Environmental Management Activities | Supply chain management |
|
Clean production system |
| |
Environmental risk management |
| |
Environmental Performance | Resources |
|
Climate change |
| |
Coping with environmental pollution and regulation |
| |
Eco-friendly products and services |
| |
Responses to Stakeholders | Environmental Report |
|
Activities for stakeholders |
|
Category | Division | Section |
---|---|---|
Employees | Employment and working conditions |
|
Labor relations |
| |
Safety and health at work |
| |
Workforce development and support |
| |
Basic rights in the workplace |
| |
Partners and Competitors | Fair trade |
|
Anti-corruption |
| |
Promoting social responsibility |
| |
Consumers | Fair trade with consumers |
|
Consumer safety and health |
| |
Consumer privacy |
| |
Communication with consumers |
| |
Community | Community involvement |
|
Regional economic development |
| |
Communicating with the community |
|
Category | Division | Section |
---|---|---|
Protection of Shareholders’ Rights | Protection and exercising convenience of shareholders’ rights |
|
Ownership structure |
| |
Transaction with related parties |
| |
Board of Directors | Form of the BOD |
|
Operation, evaluation and compensation of the BOD |
| |
Disclosure | General disclosure |
|
Homepage disclosure |
| |
Audit Function | Audit function |
|
Dividend Payment | Dividend Payment |
|
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Requirement | Criteria |
---|---|
Share ratio requirement |
|
Control (influence) requirement |
|
Variables | Mean | Std. | Min | Median | Max |
---|---|---|---|---|---|
CB | 0.156 | 0.363 | 0.000 | 0.000 | 1.000 |
DON | 1.030 | 2.093 | 0.000 | 0.209 | 12.671 |
Tobin’s Q | 1.032 | 0.566 | 0.367 | 0.882 | 3.885 |
MTB | 1.095 | 1.063 | 0.139 | 0.760 | 6.483 |
LEV | 0.433 | 0.202 | 0.034 | 0.438 | 0.912 |
SIZE | 19.697 | 1.496 | 16.934 | 19.437 | 23.998 |
CFO | 0.050 | 0.081 | −0.208 | 0.048 | 0.292 |
GW | 0.069 | 0.279 | −0.671 | 0.045 | 1.663 |
ROA | 0.031 | 0.081 | −0.312 | 0.033 | 0.263 |
LOSS | 0.201 | 0.401 | 0.000 | 0.000 | 1.000 |
BETA | 0.711 | 0.376 | −0.040 | 0.680 | 1.670 |
AGE | 3.482 | 0.658 | 1.099 | 3.664 | 4.443 |
CS | 0.023 | 0.150 | 0.000 | 0.000 | 1.000 |
Variables | CB | DON | Tobin’s Q | MTB | LEV | SIZE | CFO | GW | ROA | LOSS | BETA | AGE |
---|---|---|---|---|---|---|---|---|---|---|---|---|
DON | 0.056 *** | |||||||||||
Tobin’s Q | 0.094 *** | 0.140 *** | ||||||||||
MTB | 0.094 *** | 0.112 *** | 0.927 *** | |||||||||
LEV | 0.123 *** | −0.107 *** | 0.028 *** | 0.084 *** | ||||||||
SIZE | 0.558 *** | 0.087 *** | 0.086 *** | 0.059 *** | 0.149 *** | |||||||
CFO | 0.090 *** | 0.202 *** | 0.146 *** | 0.112 *** | −0.151 *** | 0.186 *** | ||||||
GW | 0.009 | 0.064 *** | 0.098 *** | 0.088 *** | 0.042 *** | 0.025 ** | 0.080 *** | |||||
ROA | 0.046 *** | 0.221 *** | 0.128 *** | 0.079 *** | −0.302 *** | 0.172 *** | 0.489 *** | 0.182 *** | ||||
LOSS | −0.039 *** | −0.148 *** | −0.018 * | 0.006 | 0.276 *** | −0.133 *** | −0.349 *** | −0.150 *** | −0.685 *** | |||
BETA | 0.178 *** | −0.021 ** | 0.148 *** | 0.145 *** | 0.174 *** | 0.278 *** | −0.001 | 0.030 *** | −0.024 ** | 0.056 *** | ||
AGE | −0.016 | −0.061 *** | −0.136 *** | −0.128 *** | −0.006 | 0.005 | −0.078 *** | −0.120 *** | −0.071 *** | 0.031 *** | −0.009 | |
CS | 0.033 *** | 0.013 | 0.015 | 0.015 | 0.041 *** | 0.037 *** | −0.014 | 0.003 | −0.008 | 0.025 ** | 0.009 | −0.007 |
Panel A | Panel B | ||||
---|---|---|---|---|---|
Mean | Tobin’s Q | MTB | Mean | Tobin’s Q | MTB |
CB = 0 | 1.009 | 1.052 | Small DON | 0.972 | 1.014 |
CB = 1 | 1.156 | 1.326 | Large DON | 1.092 | 1.176 |
Difference | 0.147 *** | 0.274 *** | Difference | 0.120 *** | 0.162 *** |
Variables | Panel A | Panel B | Panel C | |||
---|---|---|---|---|---|---|
Coefficient | t-Value | Coefficient | t-Value | Coefficient | t-Value | |
Intercept | 1.229 | 13.03 *** | 0.978 | 11.97 *** | 1.229 | 13.10 *** |
CB | 0.102 | 5.45 *** | 0.124 | 5.86 *** | ||
DON | 0.028 | 10.17 *** | 0.031 | 10.31 *** | ||
CB × DON | −0.020 | −2.59 *** | ||||
LEV | 0.068 | 2.23 ** | 0.090 | 2.95 *** | 0.085 | 2.80 *** |
SIZE | −0.008 | −1.74 * | 0.003 | 0.75 * | −0.011 | −2.20 ** |
CFO | 0.708 | 8.78 *** | 0.631 | 7.81 *** | 0.627 | 7.79 *** |
ROA | 1.062 | 10.13 *** | 0.934 | 8.91 *** | 0.956 | 9.12 *** |
GW | 0.126 | 6.04 *** | 0.119 | 5.76 *** | 0.120 | 5.79 *** |
LOSS | 0.169 | 8.65 *** | 0.165 | 8.51 *** | 0.166 | 8.57 *** |
BETA | 0.200 | 12.65 *** | 0.206 | 13.07 *** | 0.203 | 12.90 *** |
AGE | −0.095 | −11.00 *** | −0.093 | −10.76 *** | −0.092 | −10.72 *** |
CS | 0.037 | 0.99 | 0.034 | 0.91 | 0.031 | 0.81 |
YD | Included | Included | Included | |||
IND | Included | Included | Included | |||
Adj. R2 | 0.077 | 0.084 | 0.088 | |||
F-value | 78.64 | 86.61 | 75.29 | |||
Sample size | 9295 | 9295 | 9295 |
Variables | Panel A | Panel B | Panel C | |||
---|---|---|---|---|---|---|
Coefficient | t-Value | Coefficient | t-Value | Coefficient | t-Value | |
Intercept | 1.877 | 10.53 *** | 1.286 | 8.31 *** | 1.874 | 10.55 *** |
CB | 0.240 | 6.76 *** | 0.265 | 6.61 *** | ||
DON | 0.047 | 8.84 *** | 0.049 | 8.72 *** | ||
CB × DON | −0.025 | −1.70 * | ||||
LEV | 0.418 | 7.23 *** | 0.457 | 7.91 *** | 0.446 | 7.74 *** |
SIZE | −0.043 | −4.68 *** | −0.014 | −1.83 * | −0.046 | −5.06 *** |
CFO | 1.213 | 7.96 *** | 1.091 | 7.14 *** | 1.081 | 7.09 *** |
ROA | 1.506 | 7.60 *** | 1.279 | 6.44 *** | 1.333 | 6.72 *** |
GW | 0.208 | 5.31 *** | 0.198 | 5.05 *** | 0.199 | 5.08 *** |
LOSS | 0.251 | 6.82 *** | 0.245 | 6.67 *** | 0.247 | 6.73 *** |
BETA | 0.363 | 12.16 *** | 0.374 | 12.55 *** | 0.368 | 12.38 *** |
AGE | −0.171 | −10.44 *** | −0.168 | −10.25 *** | −0.166 | −10.16 *** |
CS | 0.066 | 0.92 | 0.062 | 0.87 | 0.055 | 0.77 |
YD | Included | Included | Included | |||
IND | Included | Included | Included | |||
Adj. R2 | 0.067 | 0.070 | 0.075 | |||
F-value | 67.78 | 71.23 | 63.51 | |||
Sample size | 9295 | 9295 | 9295 |
Variables | Panel A: Small DON Group | Panel B: Large DON Group | ||||||
---|---|---|---|---|---|---|---|---|
Panel A-1 FirmValue = Tobin’s Q | Panel A-2 FirmValue = MTB | Panel B-1 FirmValue = Tobin’s Q | Panel B-2 FirmValue = MTB | |||||
Coeff. | t-Value | Coeff. | t-Value | Coeff. | t-Value | Coeff. | t-Value | |
Intercept | 1.710 | 13.00 *** | 2.733 | 10.57 *** | 0.715 | 5.39 *** | 0.857 | 3.52 *** |
CB | 0.206 | 5.69 *** | 0.377 | 5.31 *** | 0.066 | 2.22 ** | 0.159 | 2.93 *** |
DON | −0.374 | −2.75 *** | −1.121 | −4.19 *** | 0.020 | 5.81 *** | 0.032 | 5.10 *** |
CB × DON | −0.746 | −1.88 * | −0.666 | −0.85 | −0.021 | −2.38 ** | −0.026 | −1.66 * |
LEV | 0.139 | 3.86 *** | 0.550 | 7.76 *** | 0.113 | 2.21 ** | 0.495 | 5.28 *** |
SIZE | −0.041 | −6.00 *** | −0.098 | −7.33 *** | 0.017 | 2.47 ** | 0.006 | 0.47 |
CFO | 0.011 | 0.11 | 0.060 | 0.29 | 0.964 | 8.16 *** | 1.615 | 7.44 *** |
ROA | 0.021 | 0.18 | −0.423 | −1.76 * | 2.800 | 15.56 *** | 4.785 | 14.49 *** |
GW | 0.169 | 6.77 *** | 0.267 | 5.45 *** | 0.001 | 0.02 | 0.016 | 0.26 |
LOSS | 0.029 | 1.25 | −0.018 | −0.38 | 0.304 | 9.41 *** | 0.504 | 8.51 *** |
BETA | 0.205 | 9.95 *** | 0.365 | 9.00 *** | 0.192 | 8.41 *** | 0.354 | 8.45 *** |
AGE | −0.047 | −4.08 *** | −0.086 | −3.76 *** | −0.125 | −10.22 *** | −0.221 | −9.88 *** |
CS | 0.019 | 0.36 | 0.024 | 0.23 | 0.037 | 0.72 | 0.075 | 0.80 |
YD | Included | Included | Included | Included | ||||
IND | Included | Included | Included | Included | ||||
Adj. R2 | 0.055 | 0.065 | 0.168 | 0.148 | ||||
F-value | 23.58 | 27.91 | 79.01 | 68.50 | ||||
Sample size | 4647 | 4647 | 4648 | 4648 |
Variables | Panel A Entire Sample | Panel B Negative ΔDON Group | Panel C Positive ΔDON Group | |||
---|---|---|---|---|---|---|
Coefficient | t-Value | Coefficient | t-Value | Coefficient | t-Value | |
Intercept | 1.227 | 13.00 *** | 1.187 | 8.75 *** | 1.092 | 7.53 *** |
CB | 0.102 | 5.43 *** | 0.119 | 4.48 *** | 0.086 | 3.14 *** |
ΔDON | 0.086 | 0.70 | 0.072 | 0.36 | 2.305 | 6.59 *** |
CB × ΔDON | −0.074 | −0.47 | −0.904 | −0.79 | −2.417 | −6.57 *** |
LEV | 0.068 | 2.22 ** | 0.105 | 2.36 ** | 0.135 | 2.85 *** |
SIZE | −0.008 | −1.71 * | −0.007 | −1.04 | −0.003 | −0.41 |
CFO | 0.707 | 8.77 *** | 0.766 | 6.58 *** | 0.798 | 6.72 *** |
ROA | 1.061 | 10.11 *** | 1.328 | 8.41 *** | 1.875 | 11.43 *** |
GW | 0.125 | 6.02 *** | 0.097 | 2.90 *** | 0.031 | 1.02 |
LOSS | 0.169 | 8.65 *** | 0.168 | 6.20 *** | 0.226 | 7.40 *** |
BETA | 0.200 | 12.64 *** | 0.169 | 7.61 *** | 0.225 | 9.70 *** |
AGE | −0.095 | −11.00 *** | −0.099 | −7.97 *** | −0.112 | −8.83 *** |
CS | 0.037 | 0.99 | 0.053 | 0.98 | 0.023 | 0.41 |
YD | Included | Included | Included | |||
IND | Included | Included | Included | |||
Adj. R2 | 0.077 | 0.086 | 0.131 | |||
F-value | 65.57 | 32.42 | 54.07 | |||
Sample size | 9295 | 3998 | 4235 |
Variables | Panel A Entire Sample | Panel B Negative ΔDON Group | Panel C Positive ΔDON Group | |||
---|---|---|---|---|---|---|
Coefficient | t-Value | Coefficient | t-Value | Coefficient | t-Value | |
Intercept | 1.873 | 10.50 *** | 1.708 | 6.71 *** | 1.525 | 5.57 *** |
CB | 0.239 | 6.74 *** | 0.245 | 4.93 *** | 0.218 | 4.23 *** |
ΔDON | 0.133 | 0.57 | 0.191 | 0.51 | 3.829 | 5.80 *** |
CB × ΔDON | −0.063 | −0.21 | −1.380 | −0.64 | −3.986 | −5.74 *** |
LEV | 0.418 | 7.23 *** | 0.343 | 4.09 *** | 0.498 | 5.56 *** |
SIZE | −0.042 | −4.65 *** | −0.032 | −2.48 ** | −0.028 | −1.99 ** |
CFO | 1.211 | 7.94 *** | 1.203 | 5.50 *** | 1.557 | 6.95 *** |
ROA | 1.504 | 7.59 *** | 2.047 | 6.90 *** | 2.789 | 9.02 *** |
GW | 0.208 | 5.29 *** | 0.116 | 1.83 * | 0.071 | 1.23 |
LOSS | 0.251 | 6.81 *** | 0.240 | 4.72 *** | 0.363 | 6.31 *** |
BETA | 0.363 | 12.15 *** | 0.285 | 6.82 *** | 0.438 | 10.02 *** |
AGE | −0.171 | −10.43 *** | −0.176 | −7.52 *** | −0.203 | −8.52 *** |
CS | 0.066 | 0.92 | 0.104 | 1.04 | 0.036 | 0.34 |
YD | Included | Included | Included | |||
IND | Included | Included | Included | |||
Adj. R2 | 0.067 | 0.067 | 0.115 | |||
F-value | 56.51 | 24.93 | 46.90 | |||
Sample size | 9295 | 3998 | 4235 |
Variables | Panel A FirmValue = Tobin’s Q | Panel B FirmValue = MTB | ||
---|---|---|---|---|
Coefficient | t-Value | Coefficient | t-Value | |
Intercept | 2.681 | 15.93 *** | 4.270 | 14.04 *** |
CB | 0.095 | 2.82 *** | 0.211 | 3.46 *** |
ESG | 0.297 | 7.79 *** | 0.516 | 7.50 *** |
CB × ESG | −0.104 | −1.94 * | −0.176 | −1.82 * |
LEV | 0.010 | 0.22 | 0.422 | 4.90 *** |
SIZE | −0.077 | −8.95 *** | −0.157 | −10.13 *** |
CFO | 1.064 | 7.63 *** | 1.994 | 7.91 *** |
ROA | 1.428 | 8.20 *** | 1.943 | 6.17 *** |
GW | 0.201 | 6.05 *** | 0.352 | 5.85 *** |
LOSS | 0.175 | 5.94 *** | 0.231 | 4.34 *** |
BETA | 0.172 | 7.47 *** | 0.297 | 7.12 *** |
AGE | −0.100 | −7.85 *** | −0.173 | −7.56 *** |
CS | 0.067 | 1.06 | 0.130 | 1.14 |
YD | Included | Included | ||
IND | Included | Included | ||
Adj. R2 | 0.099 | 0.091 | ||
F-value | 44.54 | 40.46 | ||
Sample size | 4747 | 4747 |
Variables | Panel A FirmValue = Tobin’s Q | Panel B FirmValue = MTB | ||
---|---|---|---|---|
Coefficient | t-Value | Coefficient | t-Value | |
Intercept | −0.512 | −1.23 | −0.303 | −0.36 |
CB | 0.092 | 1.83 * | 0.203 | 2.07 ** |
DON | 0.007 | 1.55 | 0.014 | 1.76 * |
CB × DON | −0.002 | −1.97 ** | −0.029 | −1.51 |
LEV | 0.166 | 2.07 ** | 1.053 | 5.68 *** |
SIZE | −0.018 | −0.76 | −0.142 | −2.91 *** |
CFO | 0.239 | 2.96 *** | 0.468 | 2.67 *** |
ROA | 0.731 | 4.68 *** | 1.166 | 3.63 *** |
GW | 0.106 | 4.50 *** | 0.158 | 3.64 *** |
LOSS | 0.031 | 1.45 | 0.015 | 0.36 |
BETA | 0.172 | 8.55 *** | 0.319 | 8.49 *** |
AGE | 0.473 | 8.44 *** | 0.981 | 9.07 *** |
CS | 0.051 | 1.96 ** | 0.092 | 1.62 |
Adj. R2 | 0.080 | 0.074 | ||
F-value | 19.53 | 18.56 | ||
Sample size | 9295 | 9295 |
Variables | Panel A FirmValue = Tobin’s Q | Panel B FirmValue = MTB | ||
---|---|---|---|---|
Coefficient | t-Value | Coefficient | t-Value | |
Intercept | 1.229 | 13.18 *** | 1.874 | 10.27 *** |
CB | 0.124 | 3.41 *** | 0.265 | 4.36 *** |
DON | 0.031 | 3.56 *** | 0.049 | 3.19 *** |
CB × DON | −0.020 | −2.01 ** | −0.025 | −1.48 |
LEV | 0.085 | 5.45 *** | 0.446 | 9.46 *** |
SIZE | −0.011 | −0.62 | −0.046 | −3.57 *** |
CFO | 0.627 | 6.35 *** | 1.081 | 5.41 *** |
ROA | 0.956 | 7.45 *** | 1.333 | 5.36 *** |
GW | 0.120 | 4.02 *** | 0.199 | 3.63 *** |
LOSS | 0.166 | 8.17 *** | 0.247 | 6.08 *** |
BETA | 0.203 | 12.75 *** | 0.368 | 12.18 *** |
AGE | −0.092 | −8.69 *** | −0.166 | −8.31 *** |
CS | 0.031 | 0.83 | 0.055 | 0.79 |
YD | Included | Included | ||
IND | Included | Included | ||
Adj. R2 | 0.133 | 0.113 | ||
F-value | 56.25 | 44.99 | ||
Sample size | 9295 | 9295 |
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Hong, S. Chaebol Firms’ Donation Activities and Firm Values. Sustainability 2019, 11, 2417. https://doi.org/10.3390/su11082417
Hong S. Chaebol Firms’ Donation Activities and Firm Values. Sustainability. 2019; 11(8):2417. https://doi.org/10.3390/su11082417
Chicago/Turabian StyleHong, Soonwook. 2019. "Chaebol Firms’ Donation Activities and Firm Values" Sustainability 11, no. 8: 2417. https://doi.org/10.3390/su11082417