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Jurnal Ekonomi Malaysia

53 (3) 2019 129 – 139

Moderating Effect of Slack Resources on the Charitable Giving and Firm Performance Nexus
Hubungan antara Penyederhanaan Ketersediaan Sumber terhadap Hubungan Pemberian Amal dan Prestasi Firma

Faculty of Management
Multimedia University
Persiaran Multimedia
63100 Cyberjaya Selangor
MALAYSIA

shtan@mmu.edu.my

Institute of Agricultural and Food Policy Studies
Universiti Putra Malaysia
43400 UPM Serdang Selangor
MALAYSIA

Putra Business School
43400 UPM Serdang Selangor
MALAYSIA

muzafar@putrabs.edu.my

Faculty of Management
Multimedia University
Persiaran Multimedia
63100 Cyberjaya Selangor
MALAYSIA

hbong@mmu.edu.my

Faculty of Economics and Management
Universiti Putra Malaysia
43400 UPM Serdang Selangor
MALAYSIA

azali@upm.edu.my

Abstract

This study aims to examine the relationship between charitable giving (CG) and firm performance (FP) of tourismrelated firms across various economic regions. Panel data on tourism-related firms covering the years 2002 to 2014 are utilised. Results generating from the system-GMM estimator reveals an inverse U-shaped relationship between CG and FP. This curvilinear relationship suggests that though CG enhances FP, it does not imply an unlimited increased in charitable giving. Beyond a certain limit, firm performance will deteriorate. Furthermore, the empirical results also suggest that a firm’s slack resources play a vital role in strengthening the CG–FP relationship. This finding implies that firms with higher flexibility of slack resources may allocate their slack resources in relation to CG to improve their
financial performance and subsequently remain competitive in the industry.

Keywords

Charitable giving; dynamic panel analysis; firm performance; slack resources
http://dx.doi.org/10.17576/JEM-2019-5303-10
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Tan, , Habibullah, , Ong, , & Mohamed, (2019). Moderating Effect of Slack Resources on the Charitable Giving and Firm Performance Nexus. Jurnal Ekonomi Malaysia, 53(3), 129–139. http://dx.doi.org/10.17576/JEM-2019-5303-10

@article{tan2019moderating,
  title={Moderating Effect of Slack Resources on the Charitable Giving and Firm Performance Nexus},
  author={Tan, Siow-Hooi and Habibullah, Muzafar and Ong, Hway-Boon and Mohamed, Azali},
  journal={Jurnal Ekonomi Malaysia},
  volume={53},
  number={3},
  pages={129—139},
 

year={2019},
}

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