THE RELATIONSHIP BETWEEN SENIOR EXECUTIVE’S CHARACTERISTICS, ORPORATE SOCIAL RESPONSIBILITY AND FINANCIAL PERFORMANCE

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Bo Li
Xiaoming He

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Based on Upper Echelons Theory, Resource-based Theory and Stakeholder Theory, this paper constructs a theoretical model of the relationship between senior executive’s characteristics, corporate social responsibility performance and financial performance in the Chinese context. Empirical tests were conducted based on the panel data of 2032 listed Chinese companies from 2012 to 2016. Results show that 1) political connections and overseas background of executive teams can effectively promote corporate social responsibility performance, and in turn improve the firms’ financial performance; 2) good corporate social responsibility performance can have a positive impact on financial performance; and 3) the uncertainty level of the institutional environment strengthens the positive impact of the political connections of executive teams on corporate social responsibility performance, but it weakens the positive impact of the overseas background of executive teams on corporate social responsibility performance. This paper gives theoretical supplement and empirical support to existing research limitations. At the same time, the research conclusion of this paper has guiding significance for the construction of corporate senior management team and the practice of corporate social responsibility.


 

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