Local Boy Does Good: CEO Birthplace Identity and Corporate Social Responsibility

69 Pages Posted: 9 Jan 2021 Last revised: 19 May 2021

See all articles by Zicheng Lei

Zicheng Lei

King's College London

Dimitris Petmezas

Durham University Business School

P. Raghavendra Rau

University of Cambridge

Chen Yang

Durham University Business School

Date Written: May 19, 2021

Abstract

We examine how CEO birthplace identity affects firm corporate social responsibility (CSR)
activities. CEOs heading firms located in their home birth counties are associated with higher
levels of CSR. The relation is more pronounced for CEOs with deeper home connections.
Importantly, CSR activities by home CEOs are associated with significant increases in firm value
relative to non-home CEOs. Additionally, home CEOs do not appear to extract private benefits,
either directly or indirectly, from these activities. Overall, our results suggest that engaging in CSR
will not necessarily increase levels of social trust. The place identity of the CEO also matters.

Keywords: Corporate Social Responsibility (CSR); CEOs; Home Bias, Psychology; Trust; Place Identity

JEL Classification: M14, G34, G39

Suggested Citation

Lei, Zicheng and Petmezas, Dimitris and Rau, P. Raghavendra and Yang, Chen, Local Boy Does Good: CEO Birthplace Identity and Corporate Social Responsibility (May 19, 2021). Available at SSRN: https://ssrn.com/abstract=3718687 or http://dx.doi.org/10.2139/ssrn.3718687

Zicheng Lei

King's College London ( email )

Bush House
30 Aldwych, Strand
London, WC2B 4BG
United Kingdom

Dimitris Petmezas (Contact Author)

Durham University Business School ( email )

Mill Hill Lane
Durham, DH1 3LB
United Kingdom

P. Raghavendra Rau

University of Cambridge ( email )

Cambridge Judge Business School
Trumpington Street
Cambridge, Cambridgeshire CB21AG
United Kingdom
3103626793 (Phone)

HOME PAGE: http://www.raghurau.com/

Chen Yang

Durham University Business School ( email )

Mill Hill Lane
Durham, DH1 3LB
United Kingdom

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