Work

Hometown heroism: The philanthropy of local CEOs

Year: 2025

Type: article

Abstract: How informal institutions shape executive behavior has become a central question in the corporate social responsibility literature. This study develops a dual perspective that combines internal drives and external pressures to investigate local CEOs' philanthropic contributions as a form of hometown heroism. Based on a sample of Chinese A-share listed companies from 2008 to 2023, this study provides empirical evidence that local CEOs significantly enhance corporate philanthropic behavior. Additional analyses further support the original hypotheses by confirming two underlying mechanisms: (1) internal motivation of identity-driven emotional attachment, and (2) external pressure of reputation-driven social constraints. Moreover, the impact of local CEOs is mitigated in environments characterized by high cultural diversity, intense market competition, and stringent governance practices. Overall, this study enriches the existing literature by examining how CEO characteristics influence firm-level sustainability endeavors in an emerging market. The findings provide practical implications for policymakers and firms that foster socially responsible practices tailored to specific institutional and cultural contexts. • Based on a sample of Chinese A-share listed companies from 2008 to 2023, this study provides empirical evidence that local CEOs significantly enhance corporate philanthropic behavior. • The relationship is attributable to two underlying mechanisms: (1) internal motivation of identity-driven emotional attachment, and (2) external pressure of reputation-driven social constraints. • The impact of local CEOs is mitigated in environments characterized by high cultural diversity, intense market competition, and stringent governance practice. • Overall, this study enriches the existing literature by examining how CEO characteristics influence responsible activities in an emerging market.

Source: International Review of Financial Analysis

DOI: 10.1016/j.irfa.2025.104764

Author: Hao Ren

Institution: The University of Melbourne

Language: English

Topic: Corporate Social Responsibility Reporting

Subfield: Strategy and Management

Field: Business, Management and Accounting

Domain: Social Sciences

SDG: Peace, justice, and strong institutions

Open Access status: hybrid

Estimated APC paid: $3,770