Relationship Between a CEO’s Level of Education and Corporate Social Responsibility: Evidence from Chinese Listed Firms
International Journal of Business and Economics Research
Volume 8, Issue 4, August 2019, Pages: 232-244
Received: May 13, 2019;
Published: Jul. 29, 2019
Views 64 Downloads 23
Yiming Ma, Chinese Academy of Finance and Development, Central University of Finance and Economics, Beijing, P. R. China
Juncheng Li, School of Finance, Central University of Finance and Economics, Beijing, P. R. China
Lu Yang, School of Economics, Qingdao University, Qingdao, P. R. China
Yafeng Hu, China Academy of Public Finance and Public Policy, Central University of Finance and Economics, Beijing, P. R. China
Ke Gao, Development Research Center of Shandong Provincial People’s Government, Jinan, P. R. China
This study investigates the influence of a CEO’s level of education on the Corporate Social Responsibility (CSR) of listed firms in China. We find a significant and positive impact of the CEO’s level of education on the CSR of a firm, one level promotion of CEOs' education will increase 0.1630 CSR scores of a firm and increase the probability of CSR disclosure by 10.75%. This finding is robust for the univariable analysis and for sub-items and the forward performance of CSR. Further, we find that the positive relationship between the CEO’s level of education and CSR is more pronounced for CEOs who also chair the board, state-owned firms and CEOs who have overseas experience. More concretely, when the CEO is also the chairman, the CEO’s level of education has a greater positive effect on CSR than those are not chairman. In state-owned enterprises, the CEO’s level of education plays a greater role in the positive promotion of the CSR than non-stated-owned enterprises. When the CEO has studied or worked abroad, the CEO’s level of education has a greater positive effect on the CSR than those who do not have overseas experience. Our findings shed light on the role of the CEO’s level of education in CSR, and our research on Chinese listed companies enriches the relevant research on CSR in developing countries.
Relationship Between a CEO’s Level of Education and Corporate Social Responsibility: Evidence from Chinese Listed Firms, International Journal of Business and Economics Research.
Vol. 8, No. 4,
2019, pp. 232-244.
Campbell, J. L. Why would corporations behave in socially responsible ways? An institutional theory of corporate social responsibility. Acad. Manag. Rev. 2007, 32: 946–967.
Chapple, W.; Moon, J. Corporate Social Responsibility (CSR) in Asia: A Seven-Country Study of CSR Web Site Reporting. Bus. Soc. 2005, 44: 415–441.
Jones, T. M.; Wicks, A. C. Convergent stakeholder theory. Acad. Manag. Rev. 1999, 24: 206–221.
Orlitzky, M.; Schmidt, F. L.; Rynes, S. L. Corporate social and financial performance: A meta-analysis. Toward Integrative Corporate Citizenship; Palgrave Macmillan: Basingstoke, UK, 2008.
Donaldson, T.; Dunfee, T. W. Ties that bind in business ethics: Social contracts and why they matter. J. Bank. Financ. 2002, 26: 1853–1865.
Carroll, A. B. A three-dimensional conceptual model of corporate performance. Acad. Manag. Rev. 1979, 4: 497–505.
Wood D. J. Corporate Social Performance Revisited [J]. Academy of Management Review, 1991, 16 (4): 691-718.
Sheldon O. The philosophy of management. M. Eastsussexs. Psychology Press, 2003: 55-57.
Davis, K. The case for and against business assumption of social responsibilities. Acad. Manag. J. 1973, 16: 312–322.
Mcwilliams, A.; Siegel, D. Corporate social responsibility: A theory of the firm perspective. Acad. Manag. Rev. 2001, 26: 117–127.
Schneiberg, M. Political and Institutional Conditions for Governance by Association: Private Order and Price Controls in American Fire Insurance. Politics Soc. 1999, 27: 67–103.
Friedman, Milton. The Social Responsibility of Business is to Increase its Profits. J. New York Times Magazine, 2007, 13: 173-178.
Jensen, M. C. Value maximization, stakeholder theory, and the corporate objective function. J. Appl. Corp. Financ. 2010, 22: 11.
Zu, L.; Song, L. Determinants of managerial values on corporate social responsibility: Evidence from China. J. Bus. Ethics 2009, 88: 105–117.
Khan, A. Corporate governance and corporate social responsibility disclosures: Evidence from an emerging economy. J. Bus. Ethics 2013, 114: 207–223.
Sanders, G. Behavioral responses of CEOs to stock ownership and stock option pay. Acad. Manag. J. 2001, 44: 477–492.
Marz; Joachim W., T. L. Powers, and T. Queisser. Corporate and Individual Influences on Managers' Social Orientation. J. Journal of Business Ethics, 2003, 46: 1-11.
Greening, D. W.; Gray, B. A. Testing a model of organizational response to social and political issues. Acad. Manag. J. 1994, 37: 467–498.
Ramus, C. A.; Steger, U. The roles of supervisory support behaviors and environmental policy in employee “ecoinitiatives” at leading-edge European companies. Acad. Manag. J. 2000, 43: 605–626.
Daboub, A. J.; Rasheed, A. M. A.; Gray, P. D. A. Top management team characteristics and corporate illegal activity. Acad. Manag. Rev. 1995, 20: 138–170.
Deckop, J. R.; Merriman, K. K.; Gupta, S. The Effects of CEO Pay Structure on Corporate Social Performance. J. Manag. 2006, 32: 329–342.
Dutton, J. E.; Duncan, R. B. The creation of momentum for change through the process of strategic issue diagnosis. Strateg. Manag. J. 1987, 8: 17.
Aguinis, H.; Glavas, A. What we know and don’t know about corporate social responsibility: A review and research agenda. J. Manag. 2012, 38: 932–968.
Hambrick, D. C.; Mason, P. A. Upper echelons: The organization as a reflection of its top managers. Acad. Manag. Rev. 1984, 9: 193–206.
Thomas; Simerly, R. L. Internal determinants of corporate social performance: The role. of top managers. J. Academy of Management Proccedings, 1995, 2: 411-415
Wiersema; Margarethe F.; K. A. Bantel. Top management team demography and corporate strategic change. J. Academy of Management Journal. 1992, 35: 91-121.
Oh, W. Y.; Chang, Y. K.; Martynov, A. The effect of ownership structure on corporate social responsibility: Empirical evidence from Korea. J. Bus. Ethics 2011, 104: 283–297.
Gao yongqiang; Chen yajing; zhang yunjun. "red scarf" or "green scarf": a study on charitable donation motivation of private enterprises. J. World management.2012, 8: 106-114.
Goins S.; Gruca T. S. Understanding Competitive and Contagion Effects of Layoff Announcements. J. Corporate Reputation Review.2008, 11: 12-34.
Haniffa, R. M.; Cooke, T. E. The impact of culture and governance on corporate social reporting. J. Account. Public Policy 2005, 24: 391–430.