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Corporate social responsibility and CEO dismissals: the dynamic role of average and above-average CSR on CEO dismissals

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  • Talat Mehmood Khan
  • Zhu Naiping
  • Liu Shiyu

Abstract

Considering the growing importance of Corporate Social responsibility (CSR) among various stakeholders, the present study investigates the association between corporate social responsibility (CSR) and CEO (Chief Executive Officer) dismissals. Based on a sample of Chinese listed firms from 2009 to 2019, this research study used a random effect logistic model. The findings of the study indicate that total CSR is positively associated with CEO dismissals. In further analysis, we decompose CSR and show that average CSR is negatively linked with CEO dismissals, indicating that CEOs mitigate career concerns by maintaining an optimal range of CSR investment. Moreover, above-average CSR is positively linked with CEO dismissals, indicating that when CSR investments deviate from their optimal range, CEOs’ risk of dismissal increases. Finally, we have validated our findings and show a U-shaped link between CSR and CEO dismissals. This research is helpful for policymakers in making CSR-related decisions.

Suggested Citation

  • Talat Mehmood Khan & Zhu Naiping & Liu Shiyu, 2023. "Corporate social responsibility and CEO dismissals: the dynamic role of average and above-average CSR on CEO dismissals," Journal of Environmental Planning and Management, Taylor & Francis Journals, vol. 66(14), pages 2962-2984, December.
    • Handle: RePEc:taf:jenpmg:v:66:y:2023:i:14:p:2962-2984
    DOI: 10.1080/09640568.2022.2094224
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