Does a CEO’s Cultural Background Affect Corporate Social Responsibility during the Financial Crises?
This study has utilized a large dataset containing 10269 firm-year observations from 2001 to 2015. Interestingly, the first ever relationship between CEOs’ cultural background and corporate social responsibility during the 2008-2009 financial crises has been reported. The empirical results suggest that the individualistic CEOs cultural background is positively and significantly related with the corporate social responsibility. This study reports the first ever evidence that during the financial crises, individualistic CEOs cultural background is negatively and significantly related with the corporate social responsibility. This study shows the importance of how the CEOs decisions varies during the financial crises. The pooled data methodology has been employed to generate econometric results where the empirical evidences opens-up new avenues for future research that could further evaluate the impact of CEOs cultural background on other firms’ policies.