Český finanční a účetní časopis 2021(1):37-51 | DOI: 10.18267/j.cfuc.554

Tax, financial and macroeconomic factors of corporate giving in the context of the Czech economy

Marek Halada

Ostravská univerzita, Přírodovědecká fakulta, 30. dubna 22, 701 03 Ostrava

The willingness of companies to donate is influenced by a number of factors. This paper intended to determine to what extent the tax legislation, financial results and macroeconomic factors affect corporate donation. Correlation analyses were used to determine the strength and significance of the relationships between variables. Model was based on data from the Ministry of Finance Czech Republic for the period 2002–2019. I have found that changes in tax regulation does not have a significant impact on donations, because companies manage donor policy primarily on the basis of the result achieved. Although the relationship of donation with costs has not proven to be significant, it cannot be excluded that companies view donation primarily as a cost item similar to advertising or PR.

Keywords: Altruism; Corporate philantropy; Corporate social responsibility; CSR, Deductibility limits; Donating; Giving; Tax policy; Tax shelters

JEL classification: D21, D64, L3, M14

Received: April 9, 2021; Revised: July 16, 2021; Accepted: July 19, 2021; Prepublished online: September 2, 2021; Published: September 3, 2021  Show citation