Local Boy Does Good: CEO Birthplace Identity and Corporate Social Responsibility
69 Pages Posted: 9 Jan 2021 Last revised: 19 May 2021
Date Written: May 19, 2021
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: Suggested Citation