Corporate social performance and the managerial labor market

• 成果类型: Article
• 署名作者: Dai, Xin; Gao, Feng; Lisic, Ling Lei; Zhang, Ivy Xiying
• 署名单位: Drexel University; Rutgers University System; Rutgers University Newark; Rutgers University New Brunswick; Virginia Polytechnic Institute & State University; University of California System; University of California Riverside
• 刊物名称: REVIEW OF ACCOUNTING STUDIES
• ISSN/ISSBN: 1380-6653
• DOI: 10.1007/s11142-021-09643-3
• 发表日期: 2023
• 页码: 307-339
• 关键词: agency problems; ceo turnover; RESPONSIBILITY; firm; RESTATEMENTS; companies; BEHAVIOR

摘要

This paper examines the impact of a firm's social performance on the CEO's employment prospects. We find that CEOs are more (less) likely to leave office when there is a significant recent decline (improvement) in social performance. We then track departing CEOs' subsequent employment records and find that the social performance of their previous employers improves their labor market outcomes. These CEOs are more likely to find a new executive position, move up to a larger public firm, and receive higher compensation from the new public firm. Using a Cox proportional hazard model, we find that the strong social performance of the previous employer helps CEOs find their next executive positions sooner. Overall, our results suggest that corporate social performance enhances CEOs' labor market potential.