The impact of corporate governance on corporate philanthropy in Latin America

Abstract

The relationship between corporate gover- nance and corporate philanthropy in the Latin American context is poorly understood. Using regression  analysis  with  a  four-year  panel, we investigate the effects of independent directors, women on the board, board size, and philanthropic freedom on corporate philanthropy. The results indicate that independent  directors  and  women  on  the board affect philanthropy negatively, but that board size has a positive effect. The effect of  philanthropic  freedom  is  also  positive, but less robust. These results change prior understanding about the relationship between women on the board and philanthropy, and show how studies in different contexts can contribute to theory development.