From superstition to generosity: the role of executives’ luck belief in corporate charitable donations in China

Abstract This study explores how superstition, specifically China’s “zodiac year” belief predicting bad luck, influences corporate charitable donations, addressing the unexplored psychological mechanism behind religion’s impact on CSR. Using a sample of Chinese listed firms from 2007 to 2022, we find that before their zodiac year, the chairperson tends to increase the firm’s charitable donations due to their anticipation of bad luck, which highlights the impact of managers’ nonstandard beliefs on CSR. This effect is more pronounced in regions with a strong Taoist atmosphere and within family firms. Mechanism tests indicate that the impact intensifies when firms underperform or face negative media coverage, reflecting heightened insecurity. Additionally, chairpersons tend to engage in quiet giving and purchase extra insurance before their zodiac year, highlighting self-enhancement and self-protection motivations. Our findings reveal a mechanism of egoistic motivation behind CSR, that is, executives make donations for personal psychic gratification for themselves. This study contributes to the research on both religion and motivation of charitable donations by providing a novel perspective to explain the motivation behind corporate charitable donations.