Abstract

Building on theories of institutions, stakeholders, and information economics, we argue that due to differences in stakeholder perception and information availability, the relationship between corporate philanthropy (CP) and corporate financial performance (CFP) varies across different institutions (US vs. China). Moreover, the moderating effects of stakeholder perception (as indicated by sin stocks) and information availability (as indicated by advertising intensity) on the CP-CFP relationship are also expected to differ in different institutions. Comparing and contrasting two samples of US and Chinese firms, we find support for these arguments.

Jane Lu is Professor of Management and James Riady Chair in Asian Business and Economics in the Department of Management and Marketing, the University of Melbourne. She received her Ph.D. from the Richard Ivey School of Business, University of Western Ontario in 2001. Her research centers on international strategy such as FDI location choice, entry mode choice and alliance partner selection. Her recent research continues this line of research but with a focus on emerging market firms and their internationalization.

Jane Lu has published in leading academic journals such as Administrative Science Quarterly, Academy of Management Journal, Strategic Management Journal, Journal of International Business Studies, Journal of Management and Journal of Business Venturing, among other journals. Jane Lu is a Senior Editor of Asia Pacific Journal of Management and Journal of World Business.

Prior to joining academia, Jane Lu worked in senior management positions in a major international trading company and in Rabobank in China.