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CEO ability and sustainability disclosures: The mediating effect of corporate social responsibility performance

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  • Isabel‐María García‐Sánchez
  • Beatriz Aibar‐Guzmán
  • Cristina Aibar‐Guzmán
  • Tânia‐Cristina Azevedo

Abstract

Combining the postulates of the upper echelons theory and the economic theories of information disclosure, one might expect that the effect of chief executive officers' (CEOs') managerial ability on their firms' disclosure policies has both a direct and indirect nature. The latter would be associated with the mediating role of corporate social responsibility (CSR) performance on the relationship between CEOs' ability and corporate transparency. Using a sample of 956 international firms over the period 2006–2014 (6,442 firm‐year observations), we examine the role that the CEO ability plays in determining the relevance of CSR disclosures and whether this role is mediated by CSR performance. By proposing several regression models, we document that more able CEOs are more willing to disclose comparable and useful CSR information that favours stakeholder engagement. This relationship is mediated by the impact that CEO's ability has over the implementation of sustainability strategies that improve CSR performance.

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  • Isabel‐María García‐Sánchez & Beatriz Aibar‐Guzmán & Cristina Aibar‐Guzmán & Tânia‐Cristina Azevedo, 2020. "CEO ability and sustainability disclosures: The mediating effect of corporate social responsibility performance," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 27(4), pages 1565-1577, July.
    • Handle: RePEc:wly:corsem:v:27:y:2020:i:4:p:1565-1577
    DOI: 10.1002/csr.1905
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