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Title of Journal: J Bus Ethics

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Abbravation: Journal of Business Ethics

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Springer Netherlands

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ISSN

1573-0697

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When CEO Career Horizon Problems Matter for Corpor

Authors: WonYong Oh Young Kyun Chang Zheng Cheng
Publish Date: 2014/09/18
Volume: 133, Issue: 2, Pages: 279-291
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Abstract

This paper examines the influence of CEO career horizon problems on corporate social responsibility CSR We assume that as CEOs are getting older they tend to disengage in CSR due to their shorter career horizons We further argue that high levels of industrylevel discretion ILD and blockholder ownership amplify the negative effects of CEO age on CSR Using a panel sample of USbased firms over 2004–2009 we do not find the main effect of CEO age on CSR but find support for the moderating effects such that CEO age is negatively associated with CSR when there are high levels of ILD and blockholder ownership Therefore results suggest that CEO career horizon problems matter for CSR when 1 CEOs have sufficient discretion over the firm’s strategic decisions and 2 outside blockholders put more pressure on CEOs to engage in financial earning management

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