Does managerial ownership affect different corporate social responsibility dimensions? An empirical examination of U.S. publicly traded hospitality firms

This study examines the relationship between managerial ownership and different dimensions of corporate social responsibility (CSR) in the hospitality industry. In particular, the study investigates the relationships between levels of ownership shares by managers and the CSR performances in five sub-dimensions, using panel data of the publicly traded hotel, restaurant, and casino firms in the U.S. The study relies on the two-way fixed-effects model using clustered robust standard errors. In addition, considering the potential simultaneous relationship between managerial ownership and CSR dimensions, which will cause an endogeneity problem, this study employs instrumental variables to test the existence of endogeneity and conduct the two-stage-least-squares method. However, by failing the weak identification test of the instrumental variables, the study accepts the results of two-way fixed-effects model, not those of the two-stage-least-squares method. The results indicate that managerial ownership has a significant negative relationship with employee relations and a weak negative one with diversity dimensions, while having an insignificant impact on the community, environment, and product dimensions.