Value-Enhancing Social Responsibility: Market Reaction to Donations by Family vs. Non-family Firms with Religious CEOs

Journal of Business Ethics 163 (4):745-758 (2020)
  Copy   BIBTEX

Abstract

Using a signaling framework, we argue that ethical behavior as evidenced by charitable donations is viewed more positively by investors when seen not to be based on self-serving motives but rather on authentic generosity that builds moral capital. The affirmed religiosity of CEOs may make their ethical position more credible, while their embeddedness within a family business suggests that CEOs are backed by powerful owners with long-time horizons and a desire to build moral capital with stakeholders. We find in a study of market responses to 1572 corporate donations by S&P 1500 firms that financial markets react more positively to charitable initiatives from firms with religion-declared CEOs, but only if these are family businesses.

Links

PhilArchive



    Upload a copy of this work     Papers currently archived: 90,221

External links

Setup an account with your affiliations in order to access resources via your University's proxy server

Through your library

Similar books and articles

Executive Compensation and Corporate Fraud in China.Martin J. Conyon & Lerong He - 2016 - Journal of Business Ethics 134 (4):669-691.
Mba ceos, short-term management and performance.Danny Miller & Xiaowei Xu - 2019 - Journal of Business Ethics 154 (2):285-300.
The Role of Corporate Donations in Chinese Political Markets.Ming Jia & Zhe Zhang - 2018 - Journal of Business Ethics 153 (2):519-545.

Analytics

Added to PP
2019-12-16

Downloads
8 (#1,133,785)

6 months
3 (#439,232)

Historical graph of downloads
How can I increase my downloads?