“Doing Well” by “Doing Good”? Evidence from Tourism-Related Firms in Four South Asia Countries
“Memperoleh Kejayaan” dengan “Melakukan Kebaikan”? Bukti dari Firma Berkaitan Pelancongan di Empat Negara Asia Selatan

Faculty of Management
Multimedia University
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@upm.edu.my, muzafar@putrabs.edu.my

Faculty of Management
Multimedia University
63100 Cyberjaya, Selangor, MALAYSIA.

swchoon@mmu.edu.my

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

azali@upm.edu.my

Abstract

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.

Keywords

bi-directional relation; Corporate giving; firm performance; system GMM
https://doi.org/10.17576/pengurusan-2019-55-02

Citation

Tan, S. H., Habibullah, M. S., Choon, S. W., & Mohamed, A. M. (2019). “Doing Well” by “Doing Good”? Evidence from Tourism-Related Firms in Four South Asia Countries. Jurnal Pengurusan, 55, 13–22. https://doi.org/10.17576/pengurusan-2019-55-02

@article{tan2019doing,
  title={“Doing Well” by “Doing Good”? Evidence from Tourism-Related Firms in Four South Asia Countries},
  author={Tan, Siow Hooi and Habibullah, Muzafar Shah and Choon, Shay Wei and Mohamed, Azali},
  journal={Jurnal Pengurusan},
 

volume={55},
  number={},
  pages={13—22},
  year={2019},
  doi={https://doi.org/10.17576/pengurusan-2019-55-02},
  publisher={Penerbit UKM},
}

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55 (2019) 13 – 22

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