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Does risk management moderate the relationship between CEO power and corporate philanthropy?

Author

Listed:
  • Mike Adams

    (University of Bath)

  • Wei Jiang

    (University of Manchester)

  • Siqi Liu

    (The Open University Business School, The Open University)

Abstract

By integrating upper echelons, agency, and stakeholder theories, we examine the relationship between CEO power and charitable cash donations. Utilizing a novel hand-collected dataset from the UK's insurance industry, our focus lies particularly on how risk management influences this relationship. We find that CEO power is positively related to charitable giving. However, alternative risk mitigation strategies play a moderating role in the CEO power-donations relationship, suggesting that in firms with alternative risk management strategies, CEOs are less likely to advocate for corporate giving as a method to mitigate business risks. Our results are robust to various endogeneity checks and alternative measures of CEO power. Our paper enriches the comprehension of the motives driving corporate philanthropy.

Suggested Citation

  • Mike Adams & Wei Jiang & Siqi Liu, 2025. "Does risk management moderate the relationship between CEO power and corporate philanthropy?," Review of Quantitative Finance and Accounting, Springer, vol. 64(1), pages 53-87, January.
    • Handle: RePEc:kap:rqfnac:v:64:y:2025:i:1:d:10.1007_s11156-024-01298-w
    DOI: 10.1007/s11156-024-01298-w
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    More about this item

    Keywords

    G22; G32; G34;
    All these keywords.

    JEL classification:

    • G22 - Financial Economics - - Financial Institutions and Services - - - Insurance; Insurance Companies; Actuarial Studies
    • G32 - Financial Economics - - Corporate Finance and Governance - - - Financing Policy; Financial Risk and Risk Management; Capital and Ownership Structure; Value of Firms; Goodwill
    • G34 - Financial Economics - - Corporate Finance and Governance - - - Mergers; Acquisitions; Restructuring; Corporate Governance

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