Publicity, defined as the probability of an individual’s actions being observed and widely disseminated, has become increasingly influential in shaping executive decision-making. Based on impression management (IM) theory, this paper aims to examine the impact of chairman publicity on corporate philanthropy, which is a top-tier corporate social responsibility (CSR) activity related to national development priorities. It seeks to address the theoretical motivation that heightened publicity motivates chairmen to engage in philanthropy through either defensive IM or assertive IM motives. It also aims to underscore the strategic role of publicity in CSR, particularly in Chinese firms where chairmen, rather than chief executive officers (CEOs), serves the ultimate decision-makers.
This paper introduces a novel variable Publicity, derived from the Baidu Search Volume Index (SVI) associated with the chairman’s name and stock code. Combined with the hand-collected and database data, it empirically examines the influence of Publicity on corporate philanthropy in an emerging market.
Results show the significantly positive relationship between Publicity and corporate philanthropy, revealing that high-publicity chairpersons are more inclined to engage in philanthropy for IM. Defensive IM motives are more pronounced in firms with stronger external monitoring, positive Management Discussion and Analysis narratives and longer chairperson tenures. While assertive IM motives are more prominent in firms experiencing lower economic policy uncertainty, longer listing histories and fewer financial constraints. The mechanisms through which Publicity influences corporate philanthropy include diminishing managerial myopia and agency costs internally and enhancing information transparency externally.
This research enriches the literature on corporate philanthropy determinants by integrating IM theory to demonstrate philanthropy as an IM tactic driven by chairman publicity. It expands SVI empirical research to emerging markets and provides practical implications for enhancing philanthropy in the Third Distribution, supporting CSR and advancing social sustainable development.
