For goodwill or resources? The rationale behind firms' corporate philanthropy in an environment with high economic policy uncertainty

This paper investigates the impact of economic policy uncertainty (EPU) on corporate philanthropy (CP) in Chinese A-share listed firms. It finds that firms generally decrease CP with increasing EPU, but private firms respond heterogeneously by increasing donations. Further analysis indicates private firms engage in more CSR activities simultaneously and receive more subsidies for their additional CP, suggesting political and altruistic motives. The study concludes that the primary motivation for Chinese private firms' additional CP during high EPU is to secure government resources rather than build consumer loyalty.