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CEO charity involvement and corporate performance in promoting stakeholders’ interest

Eddy Cardinaels et al.

Accounting and Business Research2025https://doi.org/10.1080/00014788.2025.2450619article
AJG 3ABDC A
Weight
0.37

Abstract

This paper examines whether CEOs of S&P 1500 firms who are involved with charity outside of their daily jobs are more committed to advancing the interests of various stakeholders. We show that firms led by CEOs with charity involvement are associated with higher corporate socially responsible (CSR) performance. Furthermore, these CEOs consistently influence other corporate matters to enhance the interests of stakeholders. More specifically, we find that firms led by CEOs with charity involvement are less likely to be involved in financial misreporting, and that these CEOs provide higher-quality management forecasts about their firms’ future performance. We also demonstrate that firms with an imminent need to improve CSR performance or reporting quality have a greater incentive to appoint CEOs involved in charity. A battery of tests show that our findings are related to the prosocial identity of these CEOs rather than to strategic firm-level motivations or CEOs’ desire to advance their social status. Overall, CEOs who engage with charitable organisations exhibit consistent prosocial behaviour in decision-making.

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https://doi.org/https://doi.org/10.1080/00014788.2025.2450619

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@article{eddy2025,
  title        = {{CEO charity involvement and corporate performance in promoting stakeholders’ interest}},
  author       = {Eddy Cardinaels et al.},
  journal      = {Accounting and Business Research},
  year         = {2025},
  doi          = {https://doi.org/https://doi.org/10.1080/00014788.2025.2450619},
}

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Evidence weight

0.37

Balanced mode · F 0.40 / M 0.15 / V 0.05 / R 0.40

F · citation impact0.16 × 0.4 = 0.06
M · momentum0.53 × 0.15 = 0.08
V · venue signal0.50 × 0.05 = 0.03
R · text relevance †0.50 × 0.4 = 0.20

† Text relevance is estimated at 0.50 on the detail page — for your query’s actual relevance score, open this paper from a search result.