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Journal of Business Ethics

, Volume 133, Issue 2, pp 279–291 | Cite as

When CEO Career Horizon Problems Matter for Corporate Social Responsibility: The Moderating Roles of Industry-Level Discretion and Blockholder Ownership

  • Won-Yong OhEmail author
  • Young Kyun Chang
  • Zheng Cheng
Article

Abstract

This paper examines the influence of CEO career horizon problems on corporate social responsibility (CSR). We assume that as CEOs are getting older, they tend to disengage in CSR due to their shorter career horizons. We further argue that high levels of industry-level discretion (ILD) and blockholder ownership amplify the negative effects of CEO age on CSR. Using a panel sample of US-based firms over 2004–2009, we do not find the main effect of CEO age on CSR, but find support for the moderating effects, such that CEO age is negatively associated with CSR when there are high levels of ILD and blockholder ownership. Therefore, results suggest that CEO career horizon problems matter for CSR when (1) CEOs have sufficient discretion over the firm’s strategic decisions and (2) outside blockholders put more pressure on CEOs to engage in financial earning management.

Keywords

CEO age Career horizon problems CSR Industry-level discretion Blockholder ownership 

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Copyright information

© Springer Science+Business Media Dordrecht 2014

Authors and Affiliations

  1. 1.Haskayne School of BusinessUniversity of CalgaryCalgaryCanada
  2. 2.College of Business & EconomicsUniversity of Wisconsin-WhitewaterWhitewaterUSA
  3. 3.School of BusinessUniversity of KansasLawrenceUSA

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