Does risk management moderate the relationship between CEO power and corporate philanthropy?

Mike Adams (), Wei Jiang () and Siqi Liu ()
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Mike Adams: University of Bath
Wei Jiang: University of Manchester
Siqi Liu: The Open University Business School, The Open University

Review of Quantitative Finance and Accounting, 2025, vol. 64, issue 1, No 2, 53-87

Abstract: Abstract By integrating upper echelons, agency, and stakeholder theories, we examine the relationship between CEO power and charitable cash donations. Utilizing a novel hand-collected dataset from the UK's insurance industry, our focus lies particularly on how risk management influences this relationship. We find that CEO power is positively related to charitable giving. However, alternative risk mitigation strategies play a moderating role in the CEO power-donations relationship, suggesting that in firms with alternative risk management strategies, CEOs are less likely to advocate for corporate giving as a method to mitigate business risks. Our results are robust to various endogeneity checks and alternative measures of CEO power. Our paper enriches the comprehension of the motives driving corporate philanthropy.

Keywords: G22; G32; G34; CEO power; Philanthropy; CSR; Risk management; Insurance (search for similar items in EconPapers)
Date: 2025
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DOI: 10.1007/s11156-024-01298-w

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