IDEAS home Printed from https://ideas.repec.org/a/gam/jjrfmx/v17y2024i1p23-d1315793.html
   My bibliography  Save this article

Exploring the Affiliation of Corporate Social Responsibility, Innovation Performance, and CEO Gender Diversity: Evidence from the U.S

Author

Listed:
  • Abeer Hassan

    (School of Business & Creative Industries, University of the West of Scotland, Paisley PA1 2BE, UK)

  • Sehrish Atif

    (School of Business & Creative Industries, University of the West of Scotland, Paisley PA1 2BE, UK)

  • Jiayi Zhang

    (Adam Smith Business School, University of Glasgow, Glasgow G12 8QQ, UK)

Abstract

This paper examines the relationship between CSR activities and innovation performance with the moderating effect of CEO gender in the U.S. market. This paper provides evidence about the relationship between CSR and innovation performance from the resources-based views by replacing the common measurements of innovation and R&D expenditures with the number of patents and citations to better measure the innovation quality rather than quantity. The current paper verifies the relationship between CSR and innovation in S&P 500 U.S. listed companies and fills the gaps in the current research on the moderating effect of CEO gender on this relationship. The paper analyzed the panel data for 1204 observations from various databases (Compustat, KLD, U.S. patents by words and Excompustat) from 2014 to 2018. Specifically, the number of patents and citations is set as the measurement of the explanatory variable; innovation performance and CSR scores from KLD are treated as the dependent variable and the proportion of female directors in the top management as the method of moderating indicator. The result in this paper shows a positive correlation between CSR and innovation performance in the U.S. At the same time, the moderating effect of CEO gender has an insignificant impact on this relationship. The findings suggest that the female CEOs do not have a positive relationship with corporate innovation. These results will help companies realize the importance of CSR activities and how to balance gender diversity in their strategies.

Suggested Citation

  • Abeer Hassan & Sehrish Atif & Jiayi Zhang, 2024. "Exploring the Affiliation of Corporate Social Responsibility, Innovation Performance, and CEO Gender Diversity: Evidence from the U.S," JRFM, MDPI, vol. 17(1), pages 1-23, January.
    • Handle: RePEc:gam:jjrfmx:v:17:y:2024:i:1:p:23-:d:1315793
    as

    Download full text from publisher

    File URL: https://www.mdpi.com/1911-8074/17/1/23/pdf
    Download Restriction: no
    File URL: https://www.mdpi.com/1911-8074/17/1/23/
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Levi, Maurice & Li, Kai & Zhang, Feng, 2014. "Director gender and mergers and acquisitions," Journal of Corporate Finance, Elsevier, vol. 28(C), pages 185-200.
    2. Freeman, Christopher & Soete, Luc, 2009. "Developing science, technology and innovation indicators: What we can learn from the past," Research Policy, Elsevier, vol. 38(4), pages 583-589, May.
    3. Tsang, Albert & Wang, Kun Tracy & Liu, Simeng & Yu, Li, 2021. "Integrating corporate social responsibility criteria into executive compensation and firm innovation: International evidence," Journal of Corporate Finance, Elsevier, vol. 70(C).
    4. Chen, Jie & Leung, Woon Sau & Evans, Kevin P., 2018. "Female board representation, corporate innovation and firm performance," Journal of Empirical Finance, Elsevier, vol. 48(C), pages 236-254.
    5. Russell Lacey & Pamela Kennett-Hensel, 2010. "Longitudinal Effects of Corporate Social Responsibility on Customer Relationships," Journal of Business Ethics, Springer, vol. 97(4), pages 581-597, December.
    6. Del Monte, Alfredo & Papagni, Erasmo, 2003. "R&D and the growth of firms: empirical analysis of a panel of Italian firms," Research Policy, Elsevier, vol. 32(6), pages 1003-1014, June.
    7. Cho, Chanho & Halford, Joseph T. & Hsu, Scott & Ng, Lilian, 2016. "Do managers matter for corporate innovation?," Journal of Corporate Finance, Elsevier, vol. 36(C), pages 206-229.
    8. Elsayed, Khaled & Paton, David, 2005. "The impact of environmental performance on firm performance: static and dynamic panel data evidence," Structural Change and Economic Dynamics, Elsevier, vol. 16(3), pages 395-412, September.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Marwan Mansour & Mohammad Fawzi Shubita & Abdalwali Lutfi & Mohammed W. A. Saleh & Mohamed Saad, 2024. "Female CEOs and Green Innovation: Evidence from Asian Firms," Sustainability, MDPI, vol. 16(21), pages 1-20, October.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Subhan Ullah & Di Sun, 2021. "Corporate social responsibility corporate innovation: A cross‐country study of developing countries," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 28(3), pages 1066-1077, May.
    2. Akshita Arora, 2022. "Gender diversity in boardroom and its impact on firm performance," Journal of Management & Governance, Springer;Accademia Italiana di Economia Aziendale (AIDEA), vol. 26(3), pages 735-755, September.
    3. Mao, Jinzhou & Xu, Donghai & Yang, Shaoze, 2023. "Female executives and corporate R&D manipulation behavior: Evidence from China," Finance Research Letters, Elsevier, vol. 57(C).
    4. Yang, Baochen & Song, Xinyu, 2023. "Does oil price uncertainty matter in firm innovation? Evidence from China," International Review of Financial Analysis, Elsevier, vol. 88(C).
    5. Huang, Yichu & Fang, Feifei & Fan, Yaoyao & Ly, Kim Cuong, 2024. "Do ‘Lehman Sisters’ work in China? Women on boards and bank risk," International Review of Financial Analysis, Elsevier, vol. 93(C).
    6. Sawssen Khlifi & Ghazi Zouari, 2021. "The Impact of CEO Overconfidence on Real Earnings Management: Evidence from M&A Transactions," Journal of Accounting and Management Information Systems, Faculty of Accounting and Management Information Systems, The Bucharest University of Economic Studies, vol. 20(3), pages 402-424, September.
    7. Lu, Yun & Ntim, Collins G. & Zhang, Qingjing & Li, Pingli, 2022. "Board of directors’ attributes and corporate outcomes: A systematic literature review and future research agenda," International Review of Financial Analysis, Elsevier, vol. 84(C).
    8. Jiang Cheng & Hung-Gay Fung & Tzu-Ting Lin & Min-Ming Wen, 2024. "CEO optimism and the use of credit default swaps: evidence from the US life insurance industry," Review of Quantitative Finance and Accounting, Springer, vol. 63(1), pages 169-194, July.
    9. Krishnan Nair & Waqas Haque & Steve Sauerwald, 2022. "It’s Not What You Say, But How You Sound: CEO Vocal Masculinity and the Board's Early‐Stage CEO Compensation Decisions," Journal of Management Studies, Wiley Blackwell, vol. 59(5), pages 1227-1252, July.
    10. Áron TÖRÖK & József TÓTH, 2013. "Open characters of innovation management in the Hungarian wine industry," Agricultural Economics, Czech Academy of Agricultural Sciences, vol. 59(9), pages 430-438.
    11. Wignaraja, Ganeshan, 2008. "FDI and Innovation as Drivers of Export Behaviour: Firm-level Evidence from East Asia," MERIT Working Papers 2008-061, United Nations University - Maastricht Economic and Social Research Institute on Innovation and Technology (MERIT).
    12. Tleubayev, Alisher & Bobojonov, Ihtiyor & Gagalyuk, Taras & Glauben, Thomas, 2020. "Board gender diversity and firm performance: Evidence from the Russian agri-food industry," EconStor Open Access Articles and Book Chapters, ZBW - Leibniz Information Centre for Economics, vol. 23(1), pages 35-53.
    13. Upadhyay, Arun, 2023. "Rising board gender diversity and incentives of female directors," Journal of Corporate Finance, Elsevier, vol. 80(C).
    14. Rayenda Khresna Brahmana & Maria Kontesa, 2021. "Does clean technology weaken the environmental impact on the financial performance? Insight from global oil and gas companies," Business Strategy and the Environment, Wiley Blackwell, vol. 30(7), pages 3411-3423, November.
    15. Shreekant Gupta & Bishwanath Goldar & Shubham Dang, 2019. "Environmental Performance And Capital Markets--Evidence From India," Working papers 303, Centre for Development Economics, Delhi School of Economics.
    16. Fang,Sheng & Goh,Chorching & Roberts,Mark & Xu,L. Colin & Zeufack,Albert G., 2020. "Female Business Leaders, Business and Cultural Environment, and Productivity around the World," Policy Research Working Paper Series 9275, The World Bank.
    17. Liu, Pu & Nguyen, Hazel T., 2020. "CEO characteristics and tone at the top inconsistency," Journal of Economics and Business, Elsevier, vol. 108(C).
    18. Joanna Tyrowicz & Siri Terjesen & Jakub Mazurek, 2017. "All on board? New evidence on board gender diversity from a large panel of firms," GRAPE Working Papers 5, GRAPE Group for Research in Applied Economics.
    19. Yik-Pui Low, Steven & Foo, Yee-Boon & Gul, Ferdinand A, 2023. "Corporate lobbying: Resource-seeking or rent-seeking? Evidence from audit fees," Journal of Contemporary Accounting and Economics, Elsevier, vol. 19(1).
    20. Soete, Luc & Verspagen, Bart & ter Weel, Bas, 2010. "Systems of Innovation," Handbook of the Economics of Innovation, in: Bronwyn H. Hall & Nathan Rosenberg (ed.), Handbook of the Economics of Innovation, edition 1, volume 2, chapter 0, pages 1159-1180, Elsevier.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:gam:jjrfmx:v:17:y:2024:i:1:p:23-:d:1315793. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: MDPI Indexing Manager (email available below). General contact details of provider: https://www.mdpi.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.