Managerial entrenchment and corporate social responsibility engagement: the role of economic policy uncertainty
Journal of Management & Governance
; 26(2):621-640, 2022.
Article
in English
| ProQuest Central | ID: covidwho-1919886
ABSTRACT
The behavioral theory of corporate governance is employed to investigate the relationship between managerial entrenchment and corporate social responsibility (CSR) engagement. Effective corporate governance is argued to reduce managerial entrenchment, thereby increasing CSR engagement. The role of economic policy uncertainty (EPU) is investigated as a moderating variable in this relationship, such that high levels of EPU will increase the impact of entrenchment on CSR engagement. These arguments are supported using a panel of 386 US firms from 2011 to 2018 representing 3,088 firm-year observations in a variety of industries. In supplementary analysis, the CSR measure is disaggregated in order to provide further insight regarding these relationships as they pertain to the individual CSR dimensions under study. Findings inform research regarding the entrenchment-CSR link in particular environmental contexts. Practical implications include potential governance guidelines for boards of directors;stakeholder management given the policy environment;and the impact of government decisions as they affect policy uncertainty, firm actions, and CSR engagement.
Business And Economics--Banking And Finance; Managerial entrenchment; Corporate social responsibility; Economic policy uncertainty; Behavioral theory of corporate governance; Social responsibility; Corporate governance; Uncertainty; Economic policy; Behavioural theory; Behavior; Investigations; Stockholders; Society; Decision making; Profits; Financial reporting; COVID-19; Earnings management; 92611:Administration of General Economic Programs
Full text:
Available
Collection:
Databases of international organizations
Database:
ProQuest Central
Language:
English
Journal:
Journal of Management & Governance
Year:
2022
Document Type:
Article
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