Corporate social irresponsibility, CEO overconfidence, and stock price crash risk

Lee, Yun-Chi; Lu, Yang-Cheng

doi:10.1080/13504851.2018.1540835

Cited by 26 publications

(22 citation statements)

References 21 publications

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“…With regard to CEO overconfidence, a positive (Arena et al , 2018; Lee et al , 2018) and negative (McCarthy et al , 2017; Tang et al , 2015) impact on CSR performance can be found in current empirical research. With regard to CEO narcissism, Petrenko et al (2016) stated a positive impact of CEO narcissism on CSR performance.…”

Section: Literature Reviewmentioning

confidence: 55%

Do CEO incentives and characteristics influence corporate social responsibility (CSR) and vice versa? A literature review

Velte

2019

SRJ

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PurposeThis paper aims to analyze whether chief executive officer (CEO) incentives and characteristics (e.g. CEO power, CEO tenure) are linked with corporate social responsibility (CSR) and vice versa.Design/methodology/approachBased on upper echelons theory, the author conducts a structured literature review and evaluates 84 empirical-quantitative studies on CEO and CSR variables.FindingsWhile the majority of the included studies analyzed the CEO-CSR link, there are indicators for a bidirectional relationship. Moreover, prior research has focused on CEO incentives, especially compensation contracts, and on the US capital market. A major research gap relates to CEO characteristics, e.g. CEO values, education and experience.Research limitations/implicationsHeterogeneous CEO and CSR variables and endogeneity concerns lower the validity of recent studies. Future research is encouraged to implement dynamic regression models, increase CSR and CEO proxies and focus on international samples with country-specific effects.Practical implicationsAs CEO activities can have a major impact on CSR activities, the author recommends firms to search for opportunities to make their CSR strategy more comprehensive by their stakeholder communication, thus providing deeper insights into their CSR performance in line with stakeholders’ interests.Originality/valueThe paper is the first literature review on the interaction between CEO and CSR so far. The author explains the main CEO and CSR variables that have been included in research, stresses the limitations of the studies and gives useful recommendations for future research, practice and regulators.

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Section: Literature Reviewmentioning

confidence: 55%

Do CEO incentives and characteristics influence corporate social responsibility (CSR) and vice versa? A literature review

Velte

2019

SRJ

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“…The consequences of corporate social responsibility such as corporate philanthropy and charitable giving have been widely discussed in the literature. Some scholars argue that philanthropic giving can generate intangible strategic assets like reputational capital (Brammer and Millington 2005), competitive advantage (Porter and Kramer 2002), positive employee attitudes (Block et al 2017), as well as a lower stock price crash risk (Zhang, Xie, and Xu 2016;Lee, Lu, and Wang 2019). On the other hand, charitable giving imposes a direct cost on the corporate, which will directly detract from the bottom line (Barnett and Salomon 2006), decreasing the shareholder value (Hogarth, Hutchinson, and Scaife 2018) or lowering the corporate's competitive power (Jensen 2002).…”

Section: Introductionmentioning

confidence: 99%

Stock market reaction to corporate philanthropic response and silence: does charity style matter?

Zhao

Guo

2020

Applied Economics Letters

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In this study, we multi-dimensionally assess the stock market reaction to the corporate charitable giving for anti-epidemic of COVID-19. Through statistical comparison of giving data from Chinese listed firms, we find that the market reaction is positive and significant only for companies reported in-kind donations. Furthermore, this reaction is larger for firms that donate goods related to their main businesses and do not disclose the value of donations. Meanwhile, the non-contributing companies suffer negative market adjustments when press releases announcing donations of their peers. This new finding of the asymmetric impacts from different types of donations, namely monetary donations and in-kind donations, on firms' stock performance contributes to the literature, as typical researches using only monetary donations, or the total reported contribution might not adequately evaluate the impact of charitable giving.

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“…Ao longo da história, o tema IrSE despertou o interesse para o desenvolvimento de pesquisas, apontando-se trabalhos variados, como aqueles que abordam a disposição dos consumidores em punir empresas que praticam IrSE (Sweetin, Knowles, Summey, & McQueen, 2013), que relacionam a IrSE com o desempenho da firma (Kang, Germann, & Grewal, 2016;Walker, Zhang, & Ni, 2019), a inclinação de consumidores a realizar boicotes, protestos e comentários negativos às empresas irresponsáveis (Trautwein & Lindenmeier, 2019), a permanência e a sucessão dos executivos (Chiu & Sharfman, 2018;Oh, Chang, & Jung, 2018) e o preço das ações (Lee, Lu, & Wang, 2019).…”

Section: Referencial Teórico E Hipótesesunclassified

(Ir)responsabilidade social empresarial: uma avaliação do desastre de Mariana-MG

et al. 2020

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Resumo A temática irresponsabilidade social empresarial (IrSE) ganhou destaque na literatura mundial. No Brasil, o desastre causado pela Samarco Mineração S.A. em 2015 foi alvo de repercussão, constituindo uma oportunidade para estudar a IrSE. O objetivo deste estudo foi investigar se a identificação social com a empresa, que surge em função dos benefícios econômicos, reduz a intenção punitiva e a atribuição de culpa. O instrumento de pesquisa contém escalas com indicadores psicométricos aplicados a 1.616 indivíduos. Constatou-se que os benefícios para a economia local reduziram a intenção punitiva nas cidades de Anchieta-ES, Guarapari-ES e Mariana-MG. O que não ocorreu nas cidades de Colatina-ES e Linhares-ES, que não recebem benefícios econômicos, mas foram afetadas pelo desastre. Identificou-se, ainda, que a severidade do evento aumentou a atribuição de culpa e a intenção punitiva aumentou a intenção de comentários negativos. Como principal conclusão, onde a empresa gerou benefícios, as pessoas estavam menos propensas a puni-la.

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Corporate social irresponsibility, CEO overconfidence, and stock price crash risk

Cited by 26 publications

References 21 publications

Do CEO incentives and characteristics influence corporate social responsibility (CSR) and vice versa? A literature review

Do CEO incentives and characteristics influence corporate social responsibility (CSR) and vice versa? A literature review

Stock market reaction to corporate philanthropic response and silence: does charity style matter?

(Ir)responsabilidade social empresarial: uma avaliação do desastre de Mariana-MG

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