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Why CEOs invest in corporate social responsibility initiatives: evidence on Shariah compliant firms

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dc.contributor.authorZaheer Anwer
dc.contributor.authorChoudhary Wajahat Naeem Azmi
dc.contributor.authorAndrea Paltrinieri
dc.contributor.authorShamsher Mohamad Ramadili Mohd
dc.date.accessioned2020-10-22T14:45:36Z
dc.date.available2020-10-22T14:45:36Z
dc.date.issued2020
dc.description.abstractThe aim of this article is to investigate the motivation of CEOs to invest in Corporate Social Responsibility (CSR) activities. To carry out this analysis, we assess a sample of US conventional and Shariah Compliant (SC) firms, from Dow Jones Indices. As SC firms undergo business and financial screening, they are expected to follow different managerial styles and capital structures as compared to conventional firms. This comparison is important in view of the growing size of the Islamic Financial Services Industry that has surpassed total asset values of USD 2.00 Trillion. Existing literature argues that, for conventional firms, CEOs spend on CSR either to promote their private benefits (agency view) or to reduce conflicts among shareholders (conflict resolution view). Our results provide evidence that across both types of firms, CEOs do not invest in CSR initiatives to pursue selfish motives but to resolve conflicts among stakeholders to maximize firm value. The findings are also robust across different specifications and methods in order to address endogeneity issues. This article contributes to the growing literature on managerial styles, capital structure and Islamic Finance, carrying out important implications for the investment industry and for the long-term value of the firm.en_US
dc.identifier.citationAnwer, Z., Naeem Azmi, C. W., Ramadili Mohd, S. M., & Paltrinieri, A. (2021). Why CEOs invest in corporate social responsibility initiatives: evidence on Shariah compliant firms. Applied Economics Letters, 28(8), 655-662. https://doi.org/10.1080/13504851.2020.1770674en_US
dc.identifier.doihttps://doi.org/10.1080/13504851.2020.1770674
dc.identifier.issn1466-4291 (Online)
dc.identifier.urihttps://ikr.inceif.edu.my/handle/INCEIF/3302
dc.languageEnglish
dc.language.isoengen_US
dc.publisherTaylor & Francisen_US
dc.rights2020. Taylor & Francis
dc.sourceSEDONA
dc.subjectCEO poweren_US
dc.subjectCorporate social responsibilityen_US
dc.subjectShariah compliant firmsen_US
dc.subjectIslamic financeen_US
dc.titleWhy CEOs invest in corporate social responsibility initiatives: evidence on Shariah compliant firmsen_US
dc.typeJournal Articleen_US
dlc.maintopicIslamic financeen_US
dspace.entity.typePublication
ikr.doctypeScholarly Works
ikr.topic.maintopicIslamic financeen_US
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relation.isAuthorOfPublication.latestForDiscovery33b91dde-0170-454c-8f2b-ec4b208837b9
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