Corporate social responsibility (CSR) and CEO luck: Are lucky CEOs socially responsible?

P. Jiraporn, P. Chintrakarn

Research output: Contribution to journalArticle

10 Scopus citations

Abstract

'Lucky' CEOs are given stock option grants on days when the stock price is the lowest in the month of the grant, implying opportunistic timing, severe agency problems and poor corporate governance. We find that lucky (opportunistic) CEOs invest significantly less in CSR. The evidence thus does not support the notion that CSR is primarily used to enhance managers' private benefits at the expense of shareholders. Rather, lucky CEOs appear to view CSR investments as depriving them of the free cash flow they could otherwise exploit.

Original languageEnglish (US)
Pages (from-to)1036-1039
Number of pages4
JournalApplied Economics Letters
Volume20
Issue number11
DOIs
StatePublished - May 31 2013

All Science Journal Classification (ASJC) codes

  • Economics and Econometrics

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