Abstract
This study examines the relationship between board co-option and corporate social responsibility (CSR) among U.S. firms. The results indicate that higher levels of board co-option are linked to weaker CSR performance, particularly in terms of environmental initiatives and diversity-related social programs. The negative association between board co-option and CSR is more pronounced in firms in which CEOs hold substantial power and short-term managerial compensation is prioritized and in industries characterized by higher information asymmetries. In contrast, independent, non-co-opted directors appointed before the incumbent CEO enhance engagement in CSR, highlighting their important role in fostering socially responsible corporate behavior.
| Original language | English |
|---|---|
| Article number | 0148558X251368673 |
| Peer-reviewed scientific journal | Journal of Accounting, Auditing and Finance |
| ISSN | 0148-558X |
| DOIs | |
| Publication status | Published - 20.08.2025 |
| MoE publication type | A1 Journal article - refereed |
Keywords
- 512 Business and Management
- board co-option
- CEO power
- CSR
- environmental performance
- social performance