TY  - UNPD
A1  - Muller, Alan
A1  - Kräussl, Roman
T1  - Do markets love misery? : Stock prices and corporate philanthropic disaster response
T2  - Center for Financial Studies (Frankfurt am Main): CFS working paper series ; No. 2008,10
N2  - While companies have emerged as very proactive donors in the wake of recent major disasters like Hurricane Katrina, it remains unclear whether that corporate generosity generates benefits to firms themselves. The literature on strategic philanthropy suggests that such philanthropic behavior may be valuable because it can generate direct and indirect benefits to the firm, yet it is not known whether investors interpret donations in this way. We develop hypotheses linking the strategic character of donations to positive abnormal returns. Using event study methodology, we investigate stock market reactions to corporate donation announcements by 108 US firms made in response to Hurricane Katrina. We then use regression analysis to examine if our hypothesized predictors are associated with positive abnormal returns. Our results show that overall, corporate donations were linked to neither positive nor negative abnormal returns. We do, however, see that a number of factors moderate the relationship between donation announcements and abnormal stock returns. Implications for theory and practice are discussed.
T3  - CFS working paper series - 2008, 10 
KW  - Corporate Philanthropy
KW  - Disasters
KW  - Event Study
KW  - Market Value
KW  - Hurricane Katrina
KW  - USA
KW  - Katrina
KW  - Hurrikan
KW  - Spende
KW  - Unternehmensbewertung
KW  - Börsenkurs
Y1  - 2008
UR  - http://publikationen.ub.uni-frankfurt.de/frontdoor/index/index/docId/93
UR  - https://nbn-resolving.org/urn:nbn:de:hebis:30-54383
ER  -