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The Strength of CEOs’Influence on CSR in Chinese listed Companies. New Insights from an Agency Theory Perspective

Author

Listed:
  • Jacob Cherian

    () (College of Business, Abu Dhabi University, P.O Box 59911 Abu Dhabi, UAE)

  • Muhammad Safdar Sial

    () (Department of Management Sciences, COMSATS University Islamabad (CUI), Islamabad 44000, Pakistan
    Institute of Business Research, University of Economics, Ho Chi Minh City, Ho Chi Minh City 700000, Vietnam)

  • Dang Khoa Tran

    () (Institute of Business Research, University of Economics, Ho Chi Minh City, Ho Chi Minh City 700000, Vietnam)

  • Jinsoo Hwang

    () (The College of Hospitality and Tourism Management, Sejong University, 98 Gunja-Dong, Gwanjin-Gu, Seoul 143-747, Korea)

  • Thai Hong Thuy Khanh

    () (Faculty of Finance and Accounting, Nguyen Tat Thanh University, Ho Chi Minh City 700000, Vietnam)

  • Mansoor Ahmed

    () (Department of Management and Business Administration, G.d’Annunzio University, 65127 Pescara, Italy)

Abstract

This study examined the strength of CEOs’ influence on CSR in Chinese listed companies. The companies chosen belonged to the non-financial sector and were listed in the Shanghai stock exchange from 2010 to 2019. The data was extracted from audited annual reports of companies including the director’s report, chairman’s statements, and notes to financial statements. We applied OLS regression as a baseline methodology to determine the extent and impact of CEO power on CSR disclosures. The results indicated significantly negative relationship between the CEOs’ power and CSR disclosure. Our results showed that separate roles of chairman and CEO can reduce agency problems and increase the CSR disclosures. This study is of importance for regulators, as it enforces the view that regulators and policymakers should continue efforts to improve corporate governance practices and CSR reporting in China, as these changes will not only improve the performance of companies but also befit society at large.

Suggested Citation

  • Jacob Cherian & Muhammad Safdar Sial & Dang Khoa Tran & Jinsoo Hwang & Thai Hong Thuy Khanh & Mansoor Ahmed, 2020. "The Strength of CEOs’Influence on CSR in Chinese listed Companies. New Insights from an Agency Theory Perspective," Sustainability, MDPI, Open Access Journal, vol. 12(6), pages 1-1, March.
  • Handle: RePEc:gam:jsusta:v:12:y:2020:i:6:p:2190-:d:331511
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    References listed on IDEAS

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    Keywords

    CEO power; corporate social responsibility disclosure; agency theory; China;

    JEL classification:

    • Q - Agricultural and Natural Resource Economics; Environmental and Ecological Economics
    • Q0 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - General
    • Q2 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation
    • Q3 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Nonrenewable Resources and Conservation
    • Q5 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics
    • Q56 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environment and Development; Environment and Trade; Sustainability; Environmental Accounts and Accounting; Environmental Equity; Population Growth
    • O13 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Agriculture; Natural Resources; Environment; Other Primary Products

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