Co-Opted Directors and Corporate Social Responsibility
This study examines the relationship between board co-option and corporate social responsibility (CSR) among U.S. firms. The results indicate that higher levels of board co-option are linked to weaker CSR performance, particularly in terms of environmental initiatives and diversity-related social programs. The negative association between board co-option and CSR is more pronounced in firms in which CEOs hold substantial power and short-term managerial compensation is prioritized and in industries characterized by higher information asymmetries. In contrast, independent, non-co-opted directors appointed before the incumbent CEO enhance engagement in CSR, highlighting their important role in fostering socially responsible corporate behavior.
Authors
- Sami Vähämaa (ORCID: https://orcid.org/0000-0003-2957-4780)
- Hanna Silvola (ORCID: https://orcid.org/0000-0001-7176-3548)
- Aaron Afzali (ORCID: https://orcid.org/0000-0002-3082-4524)
Institutions
- Hanken School of Economics (FI)
- University of Vaasa (FI)
Publication Details
- Journal
- Journal of Accounting Auditing & Finance
- Published
- 2025-08-20
- DOI
- https://doi.org/10.1177/0148558x251368673
- Citations
- 2
- Primary Topic
- Corporate Finance and Governance
- Type
- article
- Field-Weighted Citation Impact
- 7.82
Funders
- Liikesivistysrahasto