This Article provides a new perspective on corporate philanthropy by examining a previously unnoticed mechanism through which corporate pro-sociality enhances firm value: signaling. In particular, cash donations can signal financial strength. A substantial and unexpected increase in the level of...

Prevailing perspectives of corporate philanthropy are predominantly rational and limit decision making to the executive suite. Recently, however, recognition has grown that employees are also important drivers of corporate philanthropy efforts and that their motives may be more empathic in...