Shaped by their daughters: Executives, female socialization, and corporate social responsibility

Cronqvist, Henrik; Yu, Frank

doi:10.1016/j.jfineco.2017.09.003

Cited by 371 publications

(132 citation statements)

References 70 publications

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“…Nguyen, Hagendorff, and Eshraghi () find that CEOs’ cultural heritage has a significant impact on bank performance in the United States. Cronqvist and Yu () find that CEOs with daughters in their family have better CSR (corporate social responsibility) performance due to the female socialization effect. Wong et al () find more masculine CEOs have a higher return on assets (ROA), especially for firms that are less cognitively complex.…”

Section: Development Of Hypotheses and Literaturementioning

confidence: 99%

The face of risk: CEO facial masculinity and firm risk

Kamiya

Kim

Park

2018

Euro Fin Management

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We examine whether a male CEO's facial masculinity, measured by facial width‐to‐height ratio (fWHR), predicts the riskiness of his firm. Using the face pictures of 1,162 CEOs in the Execucomp database, we find supporting evidence. Firms with more masculine‐faced CEOs have higher stock return volatility and higher financial leverage and are more acquisitive. Their frequency of acquisitions, the dollar amount spent on acquisitions, and the takeover premium are all higher. We find that more masculine‐faced CEOs’ compensation is more sensitive to the risk of the firm. The result is robust when we use AI (artificial intelligence)‐measured fWHR of the CEOs.

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Section: Development Of Hypotheses and Literaturementioning

confidence: 99%

The face of risk: CEO facial masculinity and firm risk

Kamiya

Kim

Park

2018

Euro Fin Management

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“…Secondly, we contribute to the strand of literature investigating "daughter effects", in which some issues remain unresolved. While Cronqvist and Yu (2017) suggest that the daughter effect is due to female socialization (Washington, 2008) of the (mostly male) CEOs, they do not test whether the effect of daughters on the policies of male and female CEOs is different (an alternative is the existence of a "son effect" for women, due to analogous male socialization). Moreover, extant research reports the daughter effect in upper echelons of corporate executives (Cronqvist and Yu, 2017) and politicians (Washington, 2008), but not in laypeople.…”

Section: Introductionmentioning

confidence: 98%

“…While Cronqvist and Yu (2017) suggest that the daughter effect is due to female socialization (Washington, 2008) of the (mostly male) CEOs, they do not test whether the effect of daughters on the policies of male and female CEOs is different (an alternative is the existence of a "son effect" for women, due to analogous male socialization). Moreover, extant research reports the daughter effect in upper echelons of corporate executives (Cronqvist and Yu, 2017) and politicians (Washington, 2008), but not in laypeople. Obviously, CEOs and politicians are not a representative sample of the general population, because people with particular characteristics and personality traits strive for such prestigious positions (Adams et al, 2018).…”

Section: Introductionmentioning

confidence: 98%

“…Assuming there is a premium from investing in sin stocks (Hong and Kacperczyk, 2009) and women are more likely to exclude them from portfolios, this would lead women to have lower returns from their stock portfolios (e.g., in pension funds, mutual funds, or stocks held directly) than men. Another example of increased sensitivity to externalities or other-preferences is the existence of a "daughter effect" in corporate decisions: firms in which the CEO has a daughter have higher corporate social responsibility scores (Cronqvist and Yu, 2017), and hire more women to their boards (Dasgupta et al, 2018;Wang et al, 2019), compared to firms in which the CEO does not have a daughter. Crucially, such effects are not related to parenting sons, suggesting that this effect is driven by the internalization of preferences of children of a different gender than that of the decision maker, and is not due to having children in general.…”

Section: Introductionmentioning

confidence: 99%

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The effect of gender and parenting daughters on judgments of morally controversial companies

Niszczota¹,

Białek²

2020

Preprint

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Earlier findings suggest that men with daughters make judgments and decisions somewhat in line with those made by women. In this paper, we attempt to extend those findings, by testing how gender and parenting daughters affect judgments of the appropriateness of investing in and working for morally controversial companies (“sin stocks”). To do so, in Study 1 (N = 634) we investigate whether women judge the prospect of investing in sin stocks more harshly than men do, and test the hypothesis that men with daughters judge such investments less favorably than other men. In Study 2 (N = 782), we investigate the willingness to work in morally controversial companies at a significant wage premium. Results show that – for men – parenting daughters yields harsher evaluations of sin stocks, but no evidence that it lowers the propensity to work in such companies. This contrasts to the effect of gender: women reliably judge both investment and employment in morally controversial companies more harshly than men do. We suggest that an aversion towards morally controversial companies might be a partial determinant of the gender gap in wages.

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“…Some also argue that firms perform CSR activities due to pressures from the media, customers, stakeholders, and peer firms [60][61][62]. In addition, CSR performance is shown to be influenced by entrepreneurial characteristics, such as entrepreneurial personality [27] and family environment [25], as well as by firm characteristics like board diversity [63], foreign ownership [64], and business group affiliation [65].…”

Section: Introductionmentioning

confidence: 99%

FDI Spillovers on Corporate Social Responsibility: The Channel of Labor Mobility

2018

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This paper examines the spillover effects of foreign direct investment on corporate social responsibility of domestic firms, with a focus on the channel of labor mobility. With a corporate social responsibility measure based on corporate responsibility toward the environment, the public, the employees, and the consumers, we test whether and how foreign direct investment affects corporate social responsibility of Chinese firms. Our results show that firms run by entrepreneurs who have work experience and, especially, management experience in multinational enterprises investing in China conduct more corporate social responsibility activities compared with firms run by entrepreneurs without such experience. We further find that multinational enterprise management experience may enhance the entrepreneurial self-assessment of social status, broaden the international vision of entrepreneurs, and reduce the level of firm family control, which help increase firms’ uptake of corporate social responsibility activities. Our results suggest that foreign direct investment can serve as a vehicle for sustainable development, through the transfer of corporate social responsibility-related managerial knowledge from foreign to local firms.

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Shaped by their daughters: Executives, female socialization, and corporate social responsibility

Cited by 371 publications

References 70 publications

The face of risk: CEO facial masculinity and firm risk

The face of risk: CEO facial masculinity and firm risk

The effect of gender and parenting daughters on judgments of morally controversial companies

FDI Spillovers on Corporate Social Responsibility: The Channel of Labor Mobility

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