“Doing well” by “doing good”? Evidence from tourism-related firms in four South Asia countries

This study explores the corporate giving and financial performance nexus in tourism-related firms from four South Asia countries. Specifically, this study investigates if there exists an inverse U-shaped link between corporate giving and financial performance and assesses the potential bi-directiona...

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Main Authors: Tan, Siow-Hooi, Muzafar Shah Habibullah, Choon, Shay-Wei, Azali Mohamed
Format: Article
Language:English
Published: Penerbit Universiti Kebangsaan Malaysia 2019
Online Access:http://journalarticle.ukm.my/14526/
http://journalarticle.ukm.my/14526/1/33511-104458-2-PB.pdf
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author Tan, Siow-Hooi
Muzafar Shah Habibullah,
Choon, Shay-Wei
Azali Mohamed,
author_facet Tan, Siow-Hooi
Muzafar Shah Habibullah,
Choon, Shay-Wei
Azali Mohamed,
author_sort Tan, Siow-Hooi
building UKM Institutional Repository
collection Online Access
description This study explores the corporate giving and financial performance nexus in tourism-related firms from four South Asia countries. Specifically, this study investigates if there exists an inverse U-shaped link between corporate giving and financial performance and assesses the potential bi-directional relationship between these two variables. Results generated from system-GMM estimator reveal that the effects of corporate giving on both ROA and Tobin’s Q are curvilinear. In particular, an inverse U-shaped relationship is observed, implying that firms are rewarded for their corporate giving engagement, which denotes “doing-good” leads to “doing well,” within a certain limit. Interestingly, this study also finds evidence that the firms which perform well financially are shown to engage less in corporate giving. Specifically, “doing-well” firms are shown to lead to lower level of “doing good,” supporting the management opportunity hypothesis. This study has policy implications in pushing for further CSR initiatives in other industries and emerging markets.
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spelling oai:generic.eprints.org:145262020-05-02T05:20:13Z http://journalarticle.ukm.my/14526/ “Doing well” by “doing good”? Evidence from tourism-related firms in four South Asia countries Tan, Siow-Hooi Muzafar Shah Habibullah, Choon, Shay-Wei Azali Mohamed, This study explores the corporate giving and financial performance nexus in tourism-related firms from four South Asia countries. Specifically, this study investigates if there exists an inverse U-shaped link between corporate giving and financial performance and assesses the potential bi-directional relationship between these two variables. Results generated from system-GMM estimator reveal that the effects of corporate giving on both ROA and Tobin’s Q are curvilinear. In particular, an inverse U-shaped relationship is observed, implying that firms are rewarded for their corporate giving engagement, which denotes “doing-good” leads to “doing well,” within a certain limit. Interestingly, this study also finds evidence that the firms which perform well financially are shown to engage less in corporate giving. Specifically, “doing-well” firms are shown to lead to lower level of “doing good,” supporting the management opportunity hypothesis. This study has policy implications in pushing for further CSR initiatives in other industries and emerging markets. Penerbit Universiti Kebangsaan Malaysia 2019 Article PeerReviewed application/pdf en http://journalarticle.ukm.my/14526/1/33511-104458-2-PB.pdf Tan, Siow-Hooi and Muzafar Shah Habibullah, and Choon, Shay-Wei and Azali Mohamed, (2019) “Doing well” by “doing good”? Evidence from tourism-related firms in four South Asia countries. Jurnal Pengurusan, 55 . pp. 13-22. ISSN 0127-2713 http://ejournal.ukm.my/pengurusan/issue/view/1167
spellingShingle Tan, Siow-Hooi
Muzafar Shah Habibullah,
Choon, Shay-Wei
Azali Mohamed,
“Doing well” by “doing good”? Evidence from tourism-related firms in four South Asia countries
title “Doing well” by “doing good”? Evidence from tourism-related firms in four South Asia countries
title_full “Doing well” by “doing good”? Evidence from tourism-related firms in four South Asia countries
title_fullStr “Doing well” by “doing good”? Evidence from tourism-related firms in four South Asia countries
title_full_unstemmed “Doing well” by “doing good”? Evidence from tourism-related firms in four South Asia countries
title_short “Doing well” by “doing good”? Evidence from tourism-related firms in four South Asia countries
title_sort “doing well” by “doing good”? evidence from tourism-related firms in four south asia countries
url http://journalarticle.ukm.my/14526/
http://journalarticle.ukm.my/14526/
http://journalarticle.ukm.my/14526/1/33511-104458-2-PB.pdf