Early-life epidemic experience and CSR

Abstract

This study examines the link between the chairperson’s early-life epidemic experience and corporate social responsibility (CSR). Using Chinese A-share listed firms over the time period of 2010–2020, our findings indicate that (1) the chairperson’s early-life epidemic experience contributes significantly and positively to CSR, as evidenced by elevated levels of both internal CSR and external CSR. In a difference-in-differences setting using firms that undergo chairperson changes, we find that there are significant increases in overall CSR, internal CSR, and external CSR after the firm was taken over by chairpersons with higher level of early-life epidemic experience. The relationship between the chairperson’s early-life epidemic experience and CSR remains robust after a series of robustness checks. (2) the downside risk positively moderates the relationship between the chairperson’s early-life epidemic experience and CSR. (3) The results of the heterogeneity analysis indicate that the promotional effect of the chairperson’s early-life epidemic experience on CSR is notably significant for chairperson with longer tenure, and there is no significant difference in the impact of the medical resource level of the chairperson’s birthplace on the aforementioned relationship. These findings shed light on the crucial role of chairpersons’ past experiences, such as early-life epidemic exposure, in shaping CSR practices.