The determinants of corporate philanthropy in Malaysia

This paper attempts to analyse the determinants of corporate philanthropy in Malaysia. the data used in this research is secondary data from annual report. A sample of top 5 listed companies from consumer and product services sector in the Bursa Malaysia is examined from the period 2000-2018 for 19 years. The empirical estimation is based on panel data analysis technique by employing Panel Regression Fixed Effects model. This study focusses on the financial characteristics (which are represented by debt ratio, return on asset, and return on equity) and corporate reputation (represented by marketing intensity), to determine whether is there any significant relationship with corporate philanthropy. From the result, shows that debt ratio, marketing intensity, return on asset, and return on equity have insignificant relationship with sponsorship. This is because the data are not stationary (has unit root) due to limitation of study and the dependent variable is dummy variable.