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Academic Journal of Business & Management, 2023, 5(24); doi: 10.25236/AJBM.2023.052407.

Board Co-Option and Corporate Social Responsibility

Author(s)

Xinyi Liang

Corresponding Author:
Xinyi Liang
Affiliation(s)

Adam Smith Business School, University of Glasgow, Glasgow, G12 8QQ, Britain

Abstract

This paper investigates the impact of board co-optation on corporate social responsibility (CSR). It shows that board co-option carries a negative relationship with CSR based on a sample of 14,359 U.S. public companies. In line with the stakeholder theory, businesses with more co-opted directors are less inclined to protect the interests of their stakeholders, which results in firms engaging in less CSR. The paper also discovers reliable results using a propensity score matching approach and a high-dimensional fixed effect model.

Keywords

corporate social responsibility, board co-optation, corporate governance

Cite This Paper

Xinyi Liang. Board Co-Option and Corporate Social Responsibility. Academic Journal of Business & Management (2023) Vol. 5, Issue 24: 43-57. https://doi.org/10.25236/AJBM.2023.052407.

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