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Elections and CSR Engagement: International Evidence

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Abstract

Using a large panel of elections in 44 countries, we show that national elections affect CSR in contrasting ways. We posit and find that in strong institutional environments CSR engagement responds negatively to uncertainty and decreases during election periods relative to non-election periods. However, in the context of institutional weakness, characterized by incomplete and captured national institutions, we find that CSR engagement increases in electoral periods, consistent with rent-seeking behavior. We discuss the implications of these results for both theory and practice.

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Acknowledgements

We gratefully acknowledge the helpful comments of Mike Barnett, Jonathan Batten, Walid Ben-Amar, Sabri Boubaker, Narjess Boubakri, C.S. Agnes Cheng, Bill Francis, Irene Henriques, Aleksandra (Olenka) Kacperczyk, Kose John, Karen Lai, Meziane Lasfer, Woo-Jong Lee, Xiao Li, Yue Li, Mujtaba Mian, Steven Ongena, Bharat Sarath, Xunhua Su, Yi Tang, Balagopal (Bala) Vissa, and Kam Ming Wan. Our paper has also benefited from comments from seminar participants at the Hong Kong Polytechnic University, Rutgers University, Champagne School of Management, King Fahd University of Petroleum and Minerals, the Summer Accounting and Finance Conference, the Euroasia Business and Economics Society Conference, Paris Financial Management Conference, The Academy of International Business Meeting, and the Vietnam Symposium in Banking and Finance.

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  1. EGADE Business School, Tecnologico de Monterrey, Av. Rufino Tamayo y Av. Eugenio Garza Lagüera, 66269, San Pedro Garza García, N.L., Mexico

    Bryan W. Husted

  2. School of Accounting and Finance, Hong Kong Polytechnic University, Hong Hum, Kowloon, Hong Kong, China

    Walid Saffar

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Table 8 Variable definitions and sources
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Husted, B.W., Saffar, W. Elections and CSR Engagement: International Evidence. J Bus Ethics 184, 115–138 (2023). https://doi.org/10.1007/s10551-022-05172-4

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