TY - JOUR
T1 - Corporate social responsibility (CSR) and CEO luck
T2 - Are lucky CEOs socially responsible?
AU - Jiraporn, P.
AU - Chintrakarn, P.
PY - 2013
Y1 - 2013
N2 - 'Lucky' CEOs are given stock option grants on days when the stock price is the lowest in the month of the grant, implying opportunistic timing, severe agency problems and poor corporate governance. We find that lucky (opportunistic) CEOs invest significantly less in CSR. The evidence thus does not support the notion that CSR is primarily used to enhance managers' private benefits at the expense of shareholders. Rather, lucky CEOs appear to view CSR investments as depriving them of the free cash flow they could otherwise exploit.
AB - 'Lucky' CEOs are given stock option grants on days when the stock price is the lowest in the month of the grant, implying opportunistic timing, severe agency problems and poor corporate governance. We find that lucky (opportunistic) CEOs invest significantly less in CSR. The evidence thus does not support the notion that CSR is primarily used to enhance managers' private benefits at the expense of shareholders. Rather, lucky CEOs appear to view CSR investments as depriving them of the free cash flow they could otherwise exploit.
UR - http://www.scopus.com/inward/record.url?scp=84878257154&partnerID=8YFLogxK
UR - http://www.scopus.com/inward/citedby.url?scp=84878257154&partnerID=8YFLogxK
U2 - 10.1080/13504851.2013.772291
DO - 10.1080/13504851.2013.772291
M3 - Article
AN - SCOPUS:84878257154
SN - 1350-4851
VL - 20
SP - 1036
EP - 1039
JO - Applied Economics Letters
JF - Applied Economics Letters
IS - 11
ER -
