Cannot Give you Because of Living on the Top of a Castle: CEOs, Corporate Philanthropy and Firm Age
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Academic Unit
College of Business
Publication Date
2-2021
Document Type
Article
Abstract
Purpose
This study aims to investigate the role of firm age in the relationship between CEO characteristics (measured by founder status and civic engagement) and the level of corporate philanthropy which is one of the important components of corporate social responsibility (CSR) practices (Carroll, 1991).
Design/methodology/approach
Drawing from upper echelons theory, this study argues that firm age functions as a barrier that limits the relationship between CEO characteristics and the level of corporate philanthropy. Moderated regression analysis (MRA) was used to analyze data from 146 publicly traded US firms between 2010 and 2017.
Findings
This study verified that there is a significantly positive relationship between CEO civic engagement and the level of corporate philanthropy although the relationship between CEO founder status and the level of corporate philanthropy was not found to be significant. Specifically, the relationship between CEO characteristics and the level of corporate philanthropy was weaker as firms get older. Overall, the results indicate that the organizational inertia of older firms can restrict the effect of CEO characteristics on corporate philanthropy.
Journal Title
Society and Business review
Volume
16
Issue
3
Beginning Page Number
336
Last Page Number
356
DOI
https://doi.org/10.1108/SBR-05-2020-0074
Recommended Citation
Cha, Wonsuk and Rew, Dongjun, "Cannot Give you Because of Living on the Top of a Castle: CEOs, Corporate Philanthropy and Firm Age" (2021). Faculty Authors and Creators Reception. 32.
https://opus.govst.edu/fac/32