Inventory planning and tax incentives for charitable giving

• 成果类型: Article
• 署名作者: Arya, Anil; Atanasov, Tyler; Mittendorf, Brian; Yoon, Dae-Hee
• 署名单位: University System of Ohio; Ohio State University; Purdue University System; Purdue University; Yonsei University
• 刊物名称: REVIEW OF ACCOUNTING STUDIES
• ISSN/ISSBN: 1380-6653
• DOI: 10.1007/s11142-023-09818-0
• 发表日期: 2025
• 页码: 287-310
• 关键词: information; newsvendor; sales

摘要

Many of America's top corporate donors share a common feature: the bulk of their giving is in the form of in-kind products, not cash. This phenomenon is not a coincidence but rather closely tied to the tax code creating such a preference due to an enhanced deduction for inventory donations. We examine a model of inventory choice under uncertainty and demonstrate that enhanced tax deductions not only promote giving, they also notably influence inventory planning and accelerate learning of customer demand. The results confirm that enhanced deductions can be used to promote pro-social behaviors such as boosting charitable giving, aligning inventories with consumer needs, and alleviating supply chain shortages. The results also demonstrate the potential risks of excessive tax preferences for inventory donations, including inflated retail prices and additional environmental waste.