The impact of corporate charitable giving on hospitality firm performance: Doing well by doing good?

While corporate charitable giving () may have a positive or negative effect on corporate performance (based on value enhancement theory and agency cost theory, respectively), could also have no impact at all. This article tests the extent to which can influence corporate performance of Taiwan's publicly traded hospitality companies. The variable of is defined as the ratio of the total value of corporate giving to total sales revenue. The measures of corporate performance are profitability (return on assets and return on equity), stock performance and Tobin's Q. Panel regression test results reveal that can affect all measures of corporate performance except for stock return. In particular, the impact of on return on assets, return on equity and Tobin's Q is an inverted U-shape, implying that an increased can enhance corporate performance, but as the level of reaches its optimal point, an increase in could have a negative influence on corporate performance. Empirical test results can offer valuable managerial insights for the hospitality industry.