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

Main Article Content

Bo Li
Xiaoming He

Abstract

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.


 

Downloads

Download data is not yet available.

Article Details

How to Cite
Li, B., & He, X. (2020). THE RELATIONSHIP BETWEEN SENIOR EXECUTIVE’S CHARACTERISTICS, ORPORATE SOCIAL RESPONSIBILITY AND FINANCIAL PERFORMANCE. Panyapiwat Journal, 12(1), 177-190. Retrieved from https://so05.tci-thaijo.org/index.php/pimjournal/article/view/195444
Section
Research Article

References

Archie, B. C. (1979). A Three-Dimensional Conceptual Model of Corporate Performance. Management Review, (4), 497-505.

Burke, L. & Logsdon, J. M. (1996). How corporate social responsibility pays off. Long Range Planning, 29(4), 495-502.

Fanti, L. & Buccella, D. (2019). Managerial delegation games and corporate social responsibility. Managerial and Decision Economics, (6), 610-622.

Hambrick, D. C. & Mason, P. A. (1984). Upper Echelons: The Organization as a Reflection of Its Top Managers. Academy of Management Review, (2), 193-206.

Handelman, J. M. & Arnold, S. J. (1999). The Role of Marketing Actions with a Social Dimension: Appeals to the Institutional Environment. Journal of Marketing, (63), 33-48.

Jia, M. & Zhang, Z. (2010). Does Political Connection Influence Corporate Philanthropy? Management World, (4), 99-113. [in Chinese]

Jia, X. P. & Liu, Y. (2014). External Environment, Internal Resources and Corporate Social Responsibility. Nankai Business Review, (6), 13-18. [in Chinese]

Jo, H. & Na, H. (2012). Does CSR Reduce Firm Risk? Evidence from Controversial Industry Sectors. Journal of Business Ethics, (110), 441-456.

Kim, S. L., Lee, S. H. & Matsumura, T. (2019). Corporate social responsibility and privatization policy in a mixed oligopoly. Journal of Economics, (1), 67-89.

Li, W. A., Wang, P. C. & Xu, Y. K. (2015). Philanthropy, Political Connection and Debt Finance. Nankai Business Review, (1), 4-14. [in Chinese]

Li, Z. F., Tang, X. D. & Lian, Y. J. (2016). The Puzzle of Chinese Private Enterprises’ Corporate Social Responsibility. Management World, (9), 136-137. [in Chinese]

Liao, L., Lin, T. & Zhang, Y. Y. (2018). Corporate Board and Corporate Social Responsibility Assurance: Evidence from China. .Journal of Business Ethics, (1), 211-225.

Lys, T. & Naughton, J. P. (2015). Signaling through Corporate Accountability Reporting. Journal of Accounting and Economics, (60), 56-72.

Marquis, C. & Qian, C. L. (2014). Corporate Social Responsibility in China: Symbol or Substance? Organization Science, (1), 127-148.

Shahab, Y., Ntim, C. G., Ye, C. G., Ullah, F. & Fosu S. (2018). Environmental policy, environmental performance, and financial distress in China: Do top management team characteristics matter? Business Strategy and the Environment, (8), 1635-1652.

Sheldon, H. (1924). The Social Responsibility of Management, The Philosophy of Management. London: Sir Isaac Pitman and Sons Ltd.

Su, J. & He, J. (2010). Does Giving Lead to Get in? Evidence from Chinese Private Enterprises. Journal of Business Ethics, (93), 73-90.

Sun, H. F, Yao, Z. H. & Yan, M. S. (2006). The Effect of Demographic Traits of TMT on Performance of Textile and IT Corporations. Nankai Business Review, (6), 61-67. [in Chinese]

Tang, P. C., Yang, S. W. & Dirk, B. (2018). Ownership and corporate social performance in China: Why geographic remoteness matters. Journal of Cleaner Production, (197), 1284-1295.

Wen, W. & Song, J. B. (2017). Executives’ Foreign Experience and Corporate Social Responsibility. Management Science, (2), 119-131. [in Chinese]

Wickert, C. (2016). “Political” Corporate Social Responsibility in Small-and Medium-Sized Enterprises: A Conceptual Framework. Business & Society, (55), 792-824.

Wood, D. J. & Logsdon, J. M. (2019). Social Issues in Management as a Distinct Field: Corporate Social Responsibility and Performance. Business & Society, (7), 1334-1357.

Xu, X. X, Zhu, H. Y., Gan, W. Y. & Li, W. L. (2018). Returnee Executives and Improvement of Corporate Social Responsibility Performance: An Empirical Study Based on Cultural Convergence. Foreign Economics & Management, (5), 99-112. [in Chinese]

Yi, F. P. & Xu, E. M. (2014). The Relationship between Political Connection of Top Managers and Corporate Social Responsibility - An Empirical Study of Chinese Listed Companies. Economics and Management Studies, (5), 5-13. [in Chinese]

Zhang, C. (2017). Political Connections and corporate environmental responsibility: Adopting or escaping? Energy Economics, (68), 539-547.