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From childhood poverty to good boss: the impact of CEO's early-life experience on corporate employee responsibility

Author

Listed:
  • Ximeng Jia

    (Business School of Sichuan University)

  • Chen Chen

    (Guangdong University of Technology)

  • Yaoqin Li

    (Business School of Sichuan University)

  • Mengyu Hao

    (Shanghai University of International Business and Economics)

Abstract

Employees are considered essential stakeholders and fundamental competitive resources of firms, highlighting the significance of CEO attention towards employee responsibility. Drawing on upper echelons theory and imprint theory, this study aims to examine the relationship between early-life poverty experience of CEOs and employee responsibility using panel data of Chinese A-share listed companies. Results indicate that CEOs with early-life poverty experience exhibit higher employee responsibility, which is a robust finding across different tests. The study highlights that this effect is more pronounced for highly educated CEOs, state-owned enterprises, and regions with weak legal governance. Additionally, our research indicates that CEOs with poverty experience not only increased basic social security and employee benefits but also reduced perquisite consumption. This study contributes to the research on the influence of executive background on corporate management and the literature on employee responsibility from the perspective of altruistic behavior.

Suggested Citation

  • Ximeng Jia & Chen Chen & Yaoqin Li & Mengyu Hao, 2023. "From childhood poverty to good boss: the impact of CEO's early-life experience on corporate employee responsibility," Asian Business & Management, Palgrave Macmillan, vol. 22(5), pages 1937-1961, November.
    • Handle: RePEc:pal:abaman:v:22:y:2023:i:5:d:10.1057_s41291-023-00235-4
    DOI: 10.1057/s41291-023-00235-4
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