External factors of hotel philanthropic giving: Peer effects and fiscal stress

This study investigates two underexplored external determinants of hotel corporate giving (CG): peer effects and fiscal stress. Drawing on institutional theory, we analyze panel data from publicly listed Chinese hotel companies (2003–2022) using Tobit regression models to accommodate the censored nature of CG data and uncover two key findings. First, a hotel’s charitable contributions are positively associated with the philanthropic activities of local community peers, reflecting mimetic and normative isomorphic pressures. Second, fiscal stress experienced by local governments motivates firms to strategically increase CG, with this effect being more pronounced among firms with greater financial capacity. These results extend the empirical application of institutional theory to hospitality philanthropy, indicating that CG is not purely driven by altruism or reputation management but also constitutes a strategic response to competitive and coercive institutional forces. Our study offers actionable insights for hospitality practitioners and policymakers aiming to understand and enhance CG practices.