CEO risk-taking incentives and corporate social responsibility

Dunbar, Craig G.; Li, Zhichuan; Shi, Yaqi

doi:10.1016/j.jcorpfin.2020.101714

Cited by 83 publications

(44 citation statements)

References 106 publications

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“…On the other hand, firms with financial expertise hold less cash, are more indebted, and engage in more shares repurchases. CEOs who understand finance are more likely to use project-specific discount rates rather than a companywide discount rate, to manage financial policies actively, and to keep investments relatively insulated from cash flow fluctuations (Cust odio & Metzger, 2014;Dunbar et al, 2020). Most senior executives with financial backgrounds approach matter cautiously and conservatively.…”

Section: Theoretical Background and Research Hypothesesmentioning

confidence: 99%

Impact of corporate social responsibility on financial expert CEOs' turnover in heavily polluting companies in Bangladesh

Dhar

Harymawan

Sarkar

2022

Corp Soc Responsibility Env

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Based on the empirical data of heavily polluting companies in Bangladesh from 2010 to 2019, this paper conducts an empirical analysis of changes in the financial background of top management on the performance of social responsibilities of heavily polluting companies. Results from the analysis among 212 listed companies on the Dhaka Stock Exchange indicate a significant negative correlation between changes in the financial backgrounds of top management and their performance on social responsibilities. In heavily polluting firms, corporate social responsibility (CSR) performance will deteriorate after the takeover of a new financial expert CEO. Furthermore, the present study found that internal control has a significant negative and moderating effect on the above relationship. As a result, the higher the quality of internal control, the smaller the negative impact of the change in the turnover of financial expert CEO on CSR performance.

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Section: Theoretical Background and Research Hypothesesmentioning

confidence: 99%

Impact of corporate social responsibility on financial expert CEOs' turnover in heavily polluting companies in Bangladesh

Dhar

Harymawan

Sarkar

2022

Corp Soc Responsibility Env

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“…Studies show that companies and their stakeholders' civil involvement and cooperation can build social capital. The company's potential resistance and risk can also be consequently anticipated (Dunbar et al 2020). The social capital built through CSR activities could reduce the asymmetrical information with stakeholders (Li et al 2019).…”

Section: Opportunities In Csr Digitalizationmentioning

confidence: 99%

A Review on Digitalization of CSR during the COVID-19 Pandemic in Indonesia: Opportunities and Challenges

et al. 2022

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The COVID-19 pandemic has become a global problem since first appearing in 2020. Not only does it heavily affect the health sector, but it also spreads to other sectors such as social, economic, and education. Studies have shown that many global companies, including those based in Indonesia, contribute to the global pandemic mitigation by implementing Corporate Social Responsibility (CSR) programs. So far, the implementation of CSR is mainly focused on providing food, medicines, and vitamins, as well as medical facilities and equipment. On the other hand, other reviewed studies showed that the pandemic has transformed the CSR implementation from offline to online, also known as CSR digitalization. The limitation in mobility and strict social distancing rules by the government have resulted in this emergence of CSR digitalization initiatives. Although CSR digitalization is still relatively rare, several technology companies have started implementing it. CSR digitalization practices aim to empower micro, small, and medium enterprises (MSME) to master digital competencies and increase their economic condition affected by the pandemic. Companies implementing CSR digitalization reported a more efficient and effective CSR implementation. This article can potentially introduce a new paradigm to the industry players on the importance of CSR digitalization and future opportunities due to the changes in the behavior of society post-pandemic.

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“…1. Prior studies examining the relation between CSR and firm risk have mostly focused on showing how aggregate CSR directly affects a firm's risk-taking capacity, which in turn influences the firm's market valuation (Albuquerque et al, 2019;Dunbar et al, 2020;Godfrey, 2005).…”

Section: Notesmentioning

confidence: 99%

“…Although prior research has linked CSR to firm risk (Albuquerque et al, 2019;Dunbar et al, 2020;Godfrey, 2005), these studies have mainly focused on documenting how aggregate CSR affects a firm's risk-taking capacity, which in turn influences the firm's market valuation. We provide a different perspective by examining how different types of CSR activities interact with a firm's risk preferences to influence the firm's financial performance.…”

Section: Introductionmentioning

confidence: 99%

Does engaging in corporate social responsibility activities influence firm performance? The moderating effects of risk preferences and performance measurement systems

Lucianetti³

2021

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PurposeThis paper aims to examine whether and how two firm-level factors jointly moderate the relation between corporate social responsibility (CSR) activities and firm performance: (1) the “alignment” between a firm's CSR activities and risk preferences and (2) performance measurement systems (PMS).Design/methodology/approachUsing survey responses from top managers of private Italian companies and matching archival data on the financial performance of these companies, the authors show that the positive effect of CSR activities on firm performance is contingent upon CSR–risk alignment, which creates competitive advantages, and the extent to which the firm's PMS are supportive of its strategic initiatives.FindingsThe findings suggest that to extract economic benefits from CSR activities, firms must align CSR activities with their risk preferences and rely on PMS to overcome the causal ambiguity between CSR activities and competitive advantage.Originality/valueOverall, this study contributes to both the CSR–firm performance and consequences of PMS literature and holds significant practical implications.

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CEO risk-taking incentives and corporate social responsibility

Cited by 83 publications

References 106 publications

Impact of corporate social responsibility on financial expert CEOs' turnover in heavily polluting companies in Bangladesh

Impact of corporate social responsibility on financial expert CEOs' turnover in heavily polluting companies in Bangladesh

A Review on Digitalization of CSR during the COVID-19 Pandemic in Indonesia: Opportunities and Challenges

Does engaging in corporate social responsibility activities influence firm performance? The moderating effects of risk preferences and performance measurement systems

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