AN INTEGRATION OF SHARE EARNINGS INTO STRATEGIC PHILANTHROPY

Abstract

The purpose of this study examines the critical changes of strategic philanthropy prevailing in the US industry in the post-recession period between 2008-2011 specific to the selected information technology firms with regards to the notion that share earnings does not have any relationship with strategic philanthropy. The study measured the impact of strategic philanthropy behavior on profitability measures: Earnings per share (EPS) and price earnings ratio (P/E). This study also aims to measure Net income as a model of strategic philanthropy in the selected firms. The research uses 471 subsidiaries companies that were operating in the four years under study to obtain the secondary data. IBM SPSS version 21 is used to analyze the data obtained from the secondary source through Simple and Multiple Regression Analysis and ANOVA tests to determine the relationship among these variables on strategic philanthropy as discretionary management tool. . The research reveal that strategic philanthropy does not have negative impact on the measurement of EPS and PE as the main dependable variables used in the analysis. Based on the research findings, managerial implications and directions for future research are discussed