Can Corporate Generosity(CG) influence Share earnings in the United States?

Abstract

This study examines the critical changes of corporate generosities prevailing in the US industry in the post-recession period specific to the selected information technology firms with regards to the notion that share earnings does not have any relationship with Corporate generosity. The study measured the impact of corporate donation on  Earnings per share (EPS) and price earnings ratio (P/E). This study also aims to measure Net income as a model of the Corporate generosity in the selected firms.

The research uses 471 subsidiaries companies that were operating in the four years under study to obtain the secondary data. The data obtained from the secondary source was analyzed through Simple and Multiple Regression Analysis and ANOVA tests to determine the relationship among these variables on strategic philanthropy as discretionary management tool.

. The research reveals that Corporate generosity does not have negative impact on the measurement of EPS and PE as the main dependable variables used in the analysis. Based on the research findings, managerial implications and directions for future research are discussed.