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The Strength of CEOs’Influence on CSR in Chinese listed Companies. New Insights from an Agency Theory Perspective

Jacob Cherian (), Muhammad Safdar Sial (), Khoa Tran, Jinsoo Hwang (), Thai Hong Thuy Khanh () and Mansoor Ahmed ()
Additional contact information
Jacob Cherian: College of Business, Abu Dhabi University, P.O Box 59911 Abu Dhabi, UAE
Muhammad Safdar Sial: Department of Management Sciences, COMSATS University Islamabad (CUI), Islamabad 44000, Pakistan
Jinsoo Hwang: The College of Hospitality and Tourism Management, Sejong University, 98 Gunja-Dong, Gwanjin-Gu, Seoul 143-747, Korea
Thai Hong Thuy Khanh: Faculty of Finance and Accounting, Nguyen Tat Thanh University, Ho Chi Minh City 700000, Vietnam
Mansoor Ahmed: Department of Management and Business Administration, G.d’Annunzio University, 65127 Pescara, Italy

Sustainability, 2020, vol. 12, issue 6, 1-1

Abstract: This study examined the strength of CEOs’ influence on CSR in Chinese listed companies. The companies chosen belonged to the non-financial sector and were listed in the Shanghai stock exchange from 2010 to 2019. The data was extracted from audited annual reports of companies including the director’s report, chairman’s statements, and notes to financial statements. We applied OLS regression as a baseline methodology to determine the extent and impact of CEO power on CSR disclosures. The results indicated significantly negative relationship between the CEOs’ power and CSR disclosure. Our results showed that separate roles of chairman and CEO can reduce agency problems and increase the CSR disclosures. This study is of importance for regulators, as it enforces the view that regulators and policymakers should continue efforts to improve corporate governance practices and CSR reporting in China, as these changes will not only improve the performance of companies but also befit society at large.

Keywords: CEO power; corporate social responsibility disclosure; agency theory; China (search for similar items in EconPapers)
JEL-codes: Q Q0 Q2 Q3 Q5 Q56 O13 (search for similar items in EconPapers)
Date: 2020
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