Affiliation:
1. Faculty of Management, Canadian University Dubai, Dubai 117781, United Arab Emirates
2. Business School, Al-Ahliyya Amman University, Amman 19328, Jordan
Abstract
In this study, we examined the association between CEO greed and corporate social responsibility (CSR) performance with a particular emphasis on the curtailing role of corporate governance. We found that CEO greed has a negative effect on CSR, since an uncontrolled pursuit of personal gain typically reveals myopic behavior and the foregoing of investment in CSR by a greedy CEO. Additionally, we found that CEO compensation in the form of large bonuses, support, and restricted stocks options weakened the link between CEO greed and CSR. Concerning the power dynamics amongst CEOs (CEO duality and tenure), we found that CEO duality moderates the negative relation between CEO greed and CSR. We also explored the curtailing role of corporate governance (proxies represented by board gender diversity and board independence) in the association between CEO greed and CSR. Our findings show that gender diversity curtails the negative effect of CEO greed on CSR once it reaches critical mass on the corporate board. Gender critical mass also curtails the negative impact of CEO greed on CSR, even if the CEO exercises duality. Our findings have empirical and practical implications. This study contributes to the existing literature by exploring the relationship between CEO greed and CSR in Asia, a region not renowned for CSR performance. This study also provides evidence for the curtailing role of compensation and governance factors in the negative relationship between CEO greed and CSR.
Funder
Ahliya Amman University, Amman, Jordan
Subject
General Business, Management and Accounting
Reference139 articles.
1. Board diversity: Moving the field forward;Adams;Corporate Governance: An International Review,2015
2. CEO pay is indeed decoupled from CEO performance: Charting a path for the future;Aguinis;Management Research: Journal of the Iberoamerican Academy of Management,2018
3. CEO Duality, Agency Costs, and Internal Capital Allocation Efficiency;Aktas;British Journal of Management,2019
4. Working capital management, firm performance and financial constraints: Empirical evidence from India;Altaf;Asia-Pacific Journal of Business Administration,2017
5. The self-importance of moral identity;Aquino;Journal of Personality and Social Psychology,2002
Cited by
1 articles.
订阅此论文施引文献
订阅此论文施引文献,注册后可以免费订阅5篇论文的施引文献,订阅后可以查看论文全部施引文献
1. Corporate governance and its effect on ethical lapses;Corporate Governance and Sustainability Review;2023