Frontiers in Psychology (May 2022)

Do Chief Executives Matter in Corporate Financial and Social Responsibility Performance Nexus? A dynamic Model Analysis of Chinese Firms

  • R. M. Ammar Zahid,
  • Muzammil Khurshid,
  • Wajid Khan

DOI
https://doi.org/10.3389/fpsyg.2022.897444
Journal volume & issue
Vol. 13

Abstract

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This study examined the relationship between Corporate Financial Performance (CFP) and Corporate Social Responsibility Performance (CSRP). Furthermore, it explored the effectiveness of chief executive characteristics as a moderator in the CFP-CSRP nexus. We employed a dynamic sysGMM regression model on 2,439 firm-year observations of Chinese firms. The results reveal that CFP (market-based) has a significant positive impact on CSRP. However, CFP (historical) is significantly negatively related to CSRP. Furthermore, the study found that CEO turnover and CEO duality negatively moderate the CFP-CSRP relationship, while CEO as CFO positively moderates this relationship. The findings have substantial implications for all stakeholders, including investors, CEOs, corporate regulators, and policymakers.

Keywords