The Impact of Foreign Ownership on Corporate Philanthropy in Korea

This paper analyses the impact of foreign ownership of Korean firms in determining corporate philanthropy. Using the simultaneous quantile regression approach, we specifically examine how foreign ownership and its self-motivation has a different impact at different levels of distribution with regard to charitable contributions. Our empirical results indicate that foreign ownership has a positive correlation with giving in the lower quantiles of corporate philanthropy. This positive effect, however, weakens in the upper tail of distribution. Furthermore, foreign ownership is negatively correlated with corporate giving in the highest quantile. Empirical evidence suggests that the magnitude of foreign ownership can differ for different quantiles of corporate philanthropy.