Shaped by their daughters: Executives, female socialization, and corporate social responsibility

H Cronqvist, F Yu�- Journal of Financial Economics, 2017 - Elsevier
Journal of Financial Economics, 2017Elsevier
Corporate executives managing some of the largest public companies in the US are shaped
by their daughters. When a firm's chief executive officer (CEO) has a daughter, the corporate
social responsibility rating (CSR) is about 9.1% higher, compared to a median firm. The
results are robust to confronting several sources of endogeneity, eg, examining first-born
CEO daughters and CEO changes. The relation is strongest for diversity, but significant also
for broader pro-social practices related to the environment and employee relations. Our�…
Abstract
Corporate executives managing some of the largest public companies in the U.S. are shaped by their daughters. When a firm’s chief executive officer (CEO) has a daughter, the corporate social responsibility rating (CSR) is about 9.1% higher, compared to a median firm. The results are robust to confronting several sources of endogeneity, e.g., examining first-born CEO daughters and CEO changes. The relation is strongest for diversity, but significant also for broader pro-social practices related to the environment and employee relations. Our study contributes to research on female socialization, heterogeneity in CSR policies, and plausibly exogenous determinants of CEOs’ styles.
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