Abstract

https://ssrn.com/abstract=2794099
 


 



CEO Materialism and Corporate Social Responsibility


Robert H. Davidson


Georgetown University - McDonough School of Business

Aiyesha Dey


University of Minnesota - Twin Cities - Carlson School of Management

Abbie J. Smith


University of Chicago - Booth School of Business

March 23, 2016

Chicago Booth Research Paper No. 16-11
Fama-Miller Working Paper Forthcoming

Abstract:     
We study the role of individual CEOs in explaining corporate social responsibility (CSR) scores. We show that CEO fixed-effects explain 63% of the variation in CSR scores, a significant portion of which is attributable to a CEO’s “materialism” (relatively high luxury asset ownership). Specifically, firms led by materialistic CEOs have lower CSR scores, and increases in CEOs’ materialism are associated with declining scores. Finally, CSR scores in firms with non-materialistic CEOs are positively associated with accounting profitability. In contrast, CSR scores in firms with materialistic CEOs are unrelated to profitability on average; however this association is decreasing in CEO power.

Number of Pages in PDF File: 71

Keywords: Executive materialism, corporate social responsibility, accounting profitability

JEL Classification: G30, G34, G38


Open PDF in Browser Download This Paper

Date posted: June 14, 2016  

Suggested Citation

Davidson, Robert H. and Dey, Aiyesha and Smith, Abbie J., CEO Materialism and Corporate Social Responsibility (March 23, 2016). Chicago Booth Research Paper No. 16-11; Fama-Miller Working Paper Forthcoming. Available at SSRN: https://ssrn.com/abstract=2794099

Contact Information

Robert H. Davidson
Georgetown University - McDonough School of Business ( email )
3700 O Street, NW
Washington, DC 20057
United States

Aiyesha Dey
University of Minnesota - Twin Cities - Carlson School of Management ( email )
19th Avenue South
Minneapolis, MN 55455
United States
6126268626 (Phone)
Abbie J. Smith (Contact Author)
University of Chicago - Booth School of Business ( email )
1101 East 58th Street
Graduate School of Business
Chicago, IL 60637-1561
United States
773-702-7295 (Phone)
773-702-0458 (Fax)

Chicago Booth School of Business Logo

Feedback to SSRN


Paper statistics
Abstract Views: 765
Downloads: 274
Download Rank: 86,055