Journal of Business Ethics· 2026Q1
CEO Inherited Altruism, Firm Corporate Social Responsibility, and Shareholder Returns
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- Q1SCImago
- 2026year
Short summary
Firms led by CEOs with stronger inherited altruistic preferences exhibit better corporate social responsibility (CSR) performance, especially when the CEO faces less financial pressure.
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Key points
- CEO inherited altruism is linked to superior firm CSR performance.
- The positive impact of CEO altruism on CSR is amplified under lower cash flow pressure.
- Altruistic CEOs safeguard shareholder returns during economic downturns.
- Inherited altruism does not significantly correlate with higher shareholder returns in normal economic times.
AI-generated from the title and abstract; the full text is not read.
Abstract
Abstract We examine the impact of CEOs’ inherited altruistic inclination on firm corporate social responsibility (CSR) performance and shareholder returns. Specifically, we look at U.S. CEOs’ altruism as an inherited value of the CEOs’ ancestral cultural origin that shapes their moral behavior and influences firm commitment to altruistic and genuine CSR. We find that firms led by CEOs with stronger inherited altruistic preferences have better CSR performance after controlling for firm financial and corporate governance attributes and other leadership characteristics. The impact of CEO inherited altruism on CSR is higher when CEOs operate under lower cash flow pressure. Consistent with a view of ethical leadership which protects the interests of both stakeholders and shareholders, we find that CEOs who inherit altruistic preferences are not significantly associated with firms’ stock returns under normal circumstances, while they protect shareholder returns during times of financial crisis and recessions. The results survive several robustness and endogeneity checks.
The authors' abstract, as published at the source. Journal of Business Ethics, 2026 · DOI ↗
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Field: Strategy and Management
Strategy and ManagementBusiness, Management and Accounting