Superstition and Corporate Philanthropy: Evidence from Chinese Zodiac Year Belief

Abstract Superstitions are unproven beliefs that shape decision-making. While many studies have examined their influence on corporate financial decisions, few have addressed their impact on corporate social responsibility (CSR). In this study, we focus on the superstition associated with the Chinese zodiac year – a belief linked to bad luck – and investigate its effect on firms’ charitable donations. Drawing on literature concerning stress appraisal, resource building, and corporate philanthropy, and using data from Chinese listed firms from 2008 to 2020, we find a positive association between a CEO’s zodiac year and corporate donations. Furthermore, this effect is weakened by CEO’s overconfidence and amplified by increased negative media coverage of CEOs during zodiac years. This study contributes to the literature on the outcomes of superstitions in management, the antecedents of corporate philanthropy, the boundary conditions of stress appraisal, and the agency motivations of corporate philanthropy. Managerial implications are also discussed.