Work detail

Economic rationale of private donors

Author: Mgr. Katarína Miklovičová
Year: 2012 - summer
Leaders: prof. RNDr. Jiří Hlaváček CSc.
Work type: Finance, Financial Markets and Banking
Language: English
Pages: 81
Awards and prizes:
Abstract: The aim of this thesis is to analyze motivation of companies to support social,
environmental and development projects. The analysis is focused on Central European
companies, namely the Czech Republic, Slovakia, Hungary and Poland. In the empirical
part of the research interviews with selected companies and non-profit organizations are
conducted. By interviewing both sides we can see how both donors and main recipients
view the motivation behind the support. Afterwards, the relationship between
supporting social, environmental and development projects and long term financial
performance is examined. Coefficients are assigned to each company according to their
involvement in the three categories – social, environmental and development. As
measures of financial performance we choose stock market returns, which are then
regressed on the three coefficients and selected control variables. The regression results
show that supporting development projects tends to have a positive influence on
companies’ stock market performance. We do not confirm that supporting social and
environmental projects improves stock market performance of companies. This outcome
suggests that supporting development projects is a win-win situation for both companies
and non-profit organizations. Companies can improve their long-term stock market
performance and non-profit organizations gain resources for a good cause.




Patria Finance
Česká Spořitelna