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CEOs’ early-life famine experience and corporate donations: Evidence from the great Chinese famine

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  • Xu, Si
  • He, Xiaoyi
  • Xiong, Feng
  • Chen, Peiyao

Abstract

Do traumatic disaster experiences shape people's prosocial attitudes? Some literature suggests that great resource scarcity experience predicts an increase in prosocial allocations, whereas others suggest a decrease. We find CEOs exposed to the Great Chinese Famine tend to drive corporate donations, which is termed the famine effect. CEOs who have experienced more severe famines, were born in poor and food-deficient areas, or currently work in less developed regions, drive more corporate donations. Regarding board characteristics, the famine effect intensifies in older and more famine-affected directors, but decreases as female directors and board diversity increase. Finally, by examining the effect of CEOs' famine experience on different dimensions of CSR, we intriguingly find CEOs' prosocial attitudes are not oriented toward everyone but are specific to those who suffer from resource scarcity. Overall, CEOs' famine experiences substantially affect corporate donations and can result in recipient-dependent prosocial behaviors.

Suggested Citation

  • Xu, Si & He, Xiaoyi & Xiong, Feng & Chen, Peiyao, 2024. "CEOs’ early-life famine experience and corporate donations: Evidence from the great Chinese famine," Economic Modelling, Elsevier, vol. 130(C).
    • Handle: RePEc:eee:ecmode:v:130:y:2024:i:c:s0264999323003942
    DOI: 10.1016/j.econmod.2023.106582
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    More about this item

    Keywords

    Chinese great famine; Traumatic disaster; Early-life experience; Corporate donations;
    All these keywords.

    JEL classification:

    • D64 - Microeconomics - - Welfare Economics - - - Altruism; Philanthropy; Intergenerational Transfers
    • D91 - Microeconomics - - Micro-Based Behavioral Economics - - - Role and Effects of Psychological, Emotional, Social, and Cognitive Factors on Decision Making
    • M14 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - Corporate Culture; Diversity; Social Responsibility

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