Purpose While prior research has primarily emphasized the efficiency gains enabled by digital technologies, relatively little attention has been paid to media sentiment toward them. This study aims to examine how positive and negative media coverage of digital technology affects corporate giving, uncovering a critical tension between firms’ legitimacy-seeking and efficiency-oriented motivations in the digital era. Design/methodology/approach Using a panel dataset of Chinese-listed manufacturing firms from 2007 to 2021, we examine the impact of media sentiment (positive and negative) toward digital technology on corporate giving. We further explore the moderating effects of firm profitability and visibility. Findings The results indicate that positive media coverage of digital technology promotes corporate giving, particularly for firms characterized by lower profitability or higher visibility. In contrast, negative media coverage reduces corporate giving, with firm profitability mitigating and visibility amplifying this adverse effect. Originality/value This study shifts the focus from internal efficiency gains to external legitimacy pressures by highlighting how public narratives about digital technology influence corporate social behavior. It contributes to the literature on digital technology and corporate giving by uncovering how media attention, both positive and negative, can act as a critical driver of corporate giving, with their effects contingent on firm-specific characteristics.
Wang et al. (Fri,) studied this question.