Do Affiliated Bankers on Board Enhance Corporate Social Responsibility? US Evidence

Iftekhar Hasan, Hui Li, Haizhi Wang and Yun Zhu
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Hui Li: Stuart School of Business, Illinois Institute of Technology, 565 W Adams St., Chicago, IL 60661, USA
Haizhi Wang: Stuart School of Business, Illinois Institute of Technology, 565 W Adams St., Chicago, IL 60661, USA
Yun Zhu: The Peter J. Tobin College of Business, St. John’s University, 8000 Utopia Parkway, Queens, NY 11439, USA

Sustainability, 2021, vol. 13, issue 6, 1-27

Abstract: In this study, we examine whether and to what extent affiliated bankers on board may affect firms’ corporate social performance. Using a propensity score-matched sample from 2002 to 2016, we find that board directors from affiliated banks exert significantly positive influence on firms’ corporate social performance. Furthermore, board of directors from affiliated banks are negatively associated with firm investments in corporate social responsibility (CSR) activities when firms experience financial distress. Finally, we find that the effect of affiliated bankers on board on firms’ CSR performance depends on the affiliated banks’ CSR orientation, as affiliated banker directors from banks with higher CSR orientation have a stronger influence on firms’ investments in CSR activities. The results suggest that improving firm’s CSR performance is consistent with the affiliated banks’ interests.

Keywords: affiliated bankers on board; corporate social responsibility; board of directors; loans (search for similar items in EconPapers)
JEL-codes: O13 Q Q0 Q2 Q3 Q5 Q56 (search for similar items in EconPapers)
Date: 2021
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (6)

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