THE COMPETITIVE ADVANTAGE OF POSITIVE STAKEHOLDER RETURNS ON 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 school of thought that returns has positive effect on strategic philanthropy. Specifically this study focus on Measurement of the impact of strategic philanthropy behavior on profitability measures: Return on Assets (ROA), and Return on Equity (ROE). This study also aims to measure Gross margin and Turnover as a model of strategic philanthropy in the selected firms. This research jumpstart with audited consolidated financial statement of 59 listed companies comprising of 471 subsidiaries that were operating in the four years under study to obtain the secondary data. Initial approach of Statistical analysis method using IBM SPSS version 21 is used to analyze the data obtained from the secondary source. Simple and Multiple Regression Analysis; Multiple Discriminant Analysis are used to evaluate categorical data; Factor Analysis are used to analyze the relationship between the variables and examine the relationship between elements that make up a particular variable;. ANOVA tests is also used to determine how the various groups within the data collected may have greater or lesser influence on the success of strategic philanthropy as discretionary management tool. The research findings reveal that strategic philanthropy do not impact the firm performance positively. There was no evidence to proof this hypothesis. Based on the research findings, directions for future research are discussed.