Socially Responsible Corporate Networks

50 Pages Posted: 13 Jul 2023

See all articles by David Carter

David Carter

Oklahoma State University - Stillwater - Department of Finance

Yuri Hupka

Oklahoma City University - Meinders School of Business

Corey A. Shank

Miami University

Date Written: April 17, 2023

Abstract

In this paper, we document a strong comovement between a firm’s corporate social responsibility (CSR) score and the CSR scores of their social network. This result is strongest for the CEO’s social network and when firms that have a high number of connections or more central positions within a network. Our results are robust within firm (firm fixed effect model) and cross sectional variation (industry fixed effect model). Furthermore, our results are robust to exogenous shocks to social networks including forced CEO turnover and the death of a director. Our research documents that social network-based peer effects have an important role in corporate CSR policy.

Keywords: Social Networks, Peer Effects, Corporate Social Responsibility

JEL Classification: G30, G41, M14

Suggested Citation

Carter, David A. and Hupka, Yuri and Shank, Corey, Socially Responsible Corporate Networks (April 17, 2023). Available at SSRN: https://ssrn.com/abstract=4502649 or http://dx.doi.org/10.2139/ssrn.4502649

David A. Carter

Oklahoma State University - Stillwater - Department of Finance ( email )

Spears School of Business
Stillwater, OK 74078-4011
United States
405-744-5104 (Phone)
405-744-5180 (Fax)

Yuri Hupka (Contact Author)

Oklahoma City University - Meinders School of Business

2501 North Blackwelder
Oklahoma City, OK 73106-1493
United States

Corey Shank

Miami University ( email )

Oxford, OH 45056
United States

HOME PAGE: http://coreyshank.com

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