To What Extent does CEO Behavior Enhance Risk-Taking? A Banking Sector Related Evidence

Jilani, Wafa; Chouaibi, Jamel

doi:10.47743/saeb-2021-0012

Cited by 3 publications

(2 citation statements)

References 73 publications

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“…Therefore, decisions by larger boards can address stakeholders' concerns better than those of smaller boards. Agency problems become more severe with a larger board, so it becomes easier for the CEO to manipulate and monitor the board (Achdi and Ameur 2011;Jilani and Chouaibi 2021). Nonetheless, larger boards can be more efficient, as a larger number of people can be separated into the workload of monitoring managers.…”

Section: Csr Practices and Financial Performance: The Moderating Effe...mentioning

confidence: 99%

Does a Board Characteristic Moderate the Relationship between CSR Practices and Financial Performance? Evidence from European ESG Firms

Rossi

Chouaibi

et al. 2021

JRFM

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This study aims to examine the potential effect that corporate social responsibility practices (CSR) have on financial performance in ESG firms, using the moderating role of board characteristics. To test the moderating effect of the board characteristics in the relationship between CSR practices and financial performance, we applied linear regressions with panel data using the Thomson Reuters ASSET4 database from European countries in analyzing data of 225 listed companies between 2015 and 2019. The results show that board characteristics partially moderate the relationship between CSR practices and financial performance in European ESG firms. In addition, this study indicates that CSR practices affect the firm’s financial performance positively. The study findings appended a new dimension to governance research that could provide policymakers and regulators with a valuable source of information to strengthen governance mechanisms for better financial performance. Previous studies mostly investigate the direct effect of corporate governance on financial performance. A few studies examine the moderating effect of CSR practice. This paper contributes by investigating the moderating effect of governance mechanisms in the ESG context.

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Section: Csr Practices and Financial Performance: The Moderating Effe...mentioning

confidence: 99%

Does a Board Characteristic Moderate the Relationship between CSR Practices and Financial Performance? Evidence from European ESG Firms

Rossi

Chouaibi

et al. 2021

JRFM

View full text Add to dashboard Cite

show abstract

“…However, CEOs seem to underestimate risk from a risk management perspective when implementing their banking strategies and policies (Attig, 2021;Jilani and Chouaibi, 2021;Neitzert and Petras, 2022). CEOs are reluctant to employ external financing because of their bias, which causes them to misjudge the value of their bank.…”

Section: 23mentioning

confidence: 99%

CEO behavior and CSR engagement: the moderating role of bank risk-taking

Jilani

Chouaibi

Kouki

2023

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Purpose The main purpose of this paper is to look at the link between chief executive officer (CEO) behavior and corporate social responsibility (CSR) engagement with the moderating role of bank risk-taking behavior. Design/methodology/approach Based on a 13-year data set (2007–2019), the authors applied the feasible generalized least squares with panel data to test the hypotheses. Findings The findings reveal a positive and significant link between CEO behavior and CSR engagement. Based on these findings, it can be argued that the characteristics of the CEO of the banks would improve the CSR strategies. Furthermore, the study suggests a moderating effect of bank risk-taking in the link between psychological bias and corporate social responsibility engagement (CSR engagement). Practical implications As CEO behavioral characteristics are essential to understanding CSR practice, boards of directors should consider the behavioral traits of dominant and overconfident CEOs while designing CSR practices. Social implications If the bank behaves in a socially responsible manner, direct and indirect stakeholders may be able to evaluate the level of risk-taking in more detail. Originality/value This research highlights the importance of CEO behavior characteristics for CSR, which is a crucial application that supports the upper echelons theory; and fills a gap in literature research. It is one of the few studies examining the interaction between risk-taking, CEO behavior and CSR engagement.

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The moderating effect of the CSR committee on the relationship between CSR performance and financial performance: empirical evidence from European firms

Dziri,

Jarboui

2024

International Studies of Management & Organization

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To What Extent does CEO Behavior Enhance Risk-Taking? A Banking Sector Related Evidence

Cited by 3 publications

References 73 publications

Does a Board Characteristic Moderate the Relationship between CSR Practices and Financial Performance? Evidence from European ESG Firms

Does a Board Characteristic Moderate the Relationship between CSR Practices and Financial Performance? Evidence from European ESG Firms

CEO behavior and CSR engagement: the moderating role of bank risk-taking

The moderating effect of the CSR committee on the relationship between CSR performance and financial performance: empirical evidence from European firms

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