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CEO behavior and CSR engagement: the moderating role of bank risk-taking

Wafa Jilani (Department of Finance, University of Sfax, Sfax, Tunisia)
Jamel Chouaibi (Faculty of Economics and Management of Sfax, Research Laboratory of Information Technologies, Governance and Entrepreneurship (LARTIGE), University of Sfax – Tunisia, Sfax, Tunisia)
Ahmed Kouki (Department of Finance, University of Sfax, Sfax, Tunisia) (Faculty of Economics and Management of Sfax, University of Sfax, Sfax, Tunisia and Department of Accounting, College of Business and Economics, Qassim University, Buraydah, Saudi Arabia)

Corporate Governance

ISSN: 1472-0701

Article publication date: 7 June 2023

Issue publication date: 3 November 2023

360

Abstract

Purpose

The main purpose of this paper is to look at the link between chief executive officer (CEO) behavior and corporate social responsibility (CSR) engagement with the moderating role of bank risk-taking behavior.

Design/methodology/approach

Based on a 13-year data set (2007–2019), the authors applied the feasible generalized least squares with panel data to test the hypotheses.

Findings

The findings reveal a positive and significant link between CEO behavior and CSR engagement. Based on these findings, it can be argued that the characteristics of the CEO of the banks would improve the CSR strategies. Furthermore, the study suggests a moderating effect of bank risk-taking in the link between psychological bias and corporate social responsibility engagement (CSR engagement).

Practical implications

As CEO behavioral characteristics are essential to understanding CSR practice, boards of directors should consider the behavioral traits of dominant and overconfident CEOs while designing CSR practices.

Social implications

If the bank behaves in a socially responsible manner, direct and indirect stakeholders may be able to evaluate the level of risk-taking in more detail.

Originality/value

This research highlights the importance of CEO behavior characteristics for CSR, which is a crucial application that supports the upper echelons theory; and fills a gap in literature research. It is one of the few studies examining the interaction between risk-taking, CEO behavior and CSR engagement.

Keywords

Acknowledgements

The authors would like to thank the Editor and the two anonymous referees of the “Corporate Governance: The International Journal of Business in Society” for their insightful comments that have greatly benefitted the paper.

The author(s) received no financial support for the research, authorship, and/or publication of this article.

Citation

Jilani, W., Chouaibi, J. and Kouki, A. (2023), "CEO behavior and CSR engagement: the moderating role of bank risk-taking", Corporate Governance, Vol. 23 No. 7, pp. 1802-1828. https://doi.org/10.1108/CG-08-2022-0323

Publisher

:

Emerald Publishing Limited

Copyright © 2023, Emerald Publishing Limited

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