Prosocial CEOs, corporate policies, and firm value

Mei Feng (), Weili Ge (), Zhejia Ling () and Wei Ting Loh ()
Additional contact information
Mei Feng: University of Pittsburgh
Weili Ge: University of Washington
Zhejia Ling: California State University, Fullerton
Wei Ting Loh: Singapore Management University

Review of Accounting Studies, 2024, vol. 29, issue 2, No 22, 1854-1903

Abstract: Abstract This paper examines how chief executive officers’ (CEOs’) prosocial tendency influences corporate policies and firm value. We use individuals’ involvement with charitable organizations as a proxy for prosocial tendency. We find that, compared to firms with non-prosocial CEOs, firms with prosocial CEOs have lower executive subordinate turnover, implement more employee-friendly policies, experience higher customer satisfaction, and engage in more socially responsible activities. We also find that firms with prosocial CEOs have higher value and lower risk, partly due to the corporate policies adopted by prosocial CEOs. These results are corroborated when we compare changes in corporate policies and firm value around different types of CEO turnovers: a prosocial CEO replacing a non-prosocial CEO versus other types. Our results thus suggest that prosocial CEOs are more likely to make corporate decisions that benefit others and increase firm value.

Keywords: Prosocial tendency; Corporate policies; Employee turnover; Customer satisfaction; Corporate social responsibility; Firm value (search for similar items in EconPapers)
JEL-codes: D64 G40 G41 M14 (search for similar items in EconPapers)
Date: 2024
References: View complete reference list from CitEc
Citations:

Downloads: (external link)
http://link.springer.com/10.1007/s11142-023-09761-0 Abstract (text/html)
Access to the full text of the articles in this series is restricted.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:spr:reaccs:v:29:y:2024:i:2:d:10.1007_s11142-023-09761-0

Ordering information: This journal article can be ordered from
http://www.springer.com/accounting/journal/11142

DOI: 10.1007/s11142-023-09761-0

Access Statistics for this article

Review of Accounting Studies is currently edited by Paul Fischer

More articles in Review of Accounting Studies from Springer
Bibliographic data for series maintained by Sonal Shukla () and Springer Nature Abstracting and Indexing ().