The Effect of CEO Optimism and Myopia on Dimensions of Corporate Social Responsibility Moderated by CEO Political Connection and Efficiency

Document Type : Research Paper

Authors

1 - PhD Student of Financial Engineering, Aliabad Katoul, Branch, Islamic Azad University, Aliabad katoul , Iran.

2 Assistant Professor of Accounting Department, Aliabad Katoul, Branch, Islamic Azad University, Aliabad katoul , Iran.

3 Professor, Department of social science and economics, Alzahra University, Tehran, Iran

4 Assistant Prof. Accounting Dept. Islamic Azad Univer - AliAbad Katool Branch

Abstract

Purpose: This study analyzes the effects of optimism and myopia of CEOs on the dimensions of corporate social responsibility (CSR) including environmental responsibility, social performance, responsibility for products and services, and human resources responsibility with respect to the moderating roles of political connections and CEO effectiveness.
Method: The statistical sample included 130 companies listed in the Tehran Stock Exchange within the 2014–2020 period. The multivariate regression method was employed to test the research hypotheses.
Results: According to the research results, a CEO optimism had a positive relationship with human resources responsibility but had a negative relationship with environmental responsibility. There was also a negative relationship between myopia and human resources responsibility. Political connections moderating the relationship between myopia and human resources responsibility. Moreover, efficiency had a positive moderating role in the relationship between optimism and human resources responsibility but had negative effects on the other CSR dimensions. Furthermore, effectiveness had positive moderating roles in the relationships of myopia with human resources responsibility and social performance but had negative effects on the responsibility for products and services.
Conclusion: Optimistic CEOs pay less attention to environmental responsibility, thereby increasing corporate risk, but pay more attention to human resources responsibility. By contrast, myopic CEOs make fewer investments in human resources responsibility.
Contribution: Apparently, there is a paucity of empirical background to the relationships of CEO optimism and myopia with the dimensions of CSR. Therefore, this study can help enhance the relevant knowledge.

Keywords

References

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Journal of Accounting and Social Interests
Volume 12, Issue 3 - Serial Number 46
September 2022
Pages 103-134

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History

  • Receive Date: 04 March 2022
  • Revise Date: 22 July 2022
  • Accept Date: 30 July 2022

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