Impact of corporate donations to combat Covid-19 on the market value of donor companies: an analysis from the perspective of legitimacy theory
DOI:
https://doi.org/10.21680/2176-9036.2025v17n1ID34620Keywords:
Covid-19, doação corporativa, teoria da legitimidade, responsabilidade social corporativa, estudo de eventosAbstract
Purpose: The objective of the study is to verify the impact of corporate donations to combat Covid-19 on the market value of the companies involved.
Methodology: We use the event study methodology of the return of company shares on the dates when corporate donations are announced.
Results: Results indicate an increase in the standard deviation of daily returns of Itaú, Vale and JBS shares, when compared to Ibovespa. For Itaú, 3 statistically significant abnormal returns occurred during the event window, 2 being negatives and only 1 positive, thus prevailing the former. In Vale, there was 1 of each at the moment prior to the event, as well as 1 positive on the day of the event. In JBS, 5 statistically significant abnormal returns were observed during the event window, being 3 positives and 2 negatives. Thus, the initial hypothesis, in the sense that corporate donations in the context of the Covid-19 pandemic positively impact the market value of donors, was partially confirmed for Vale and JBS, but not for Itaú.
Contributions of the Study: The practice of acts of corporate social responsibility (CSR) positively impacts the market value of practicing companies. Furthermore, the study indicates that the impact on market value varies between companies depending on the nature of the threat to their legitimacy, with those whose threat arises from their individual responsibility having a positive impact.
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