| Summary: | 碩士 === 國立中央大學 === 財務金融學系 === 107 === This paper finds that CEO’s cultural identity formed in different life stages affects his/her firm’s Corporate Social Responsibility (CSR) decisions. I examine CEO’s cultural identity formed in three different stages throughout his/her life: We childhood stage, college stage, and working stage (use the last job before current position). With this empirical design, I can answer which stage is the most relevant in forming cultural identity which affects CSR policies and I provide an improvement over the commonly used method according to nationality.
Utilizing Hofstede and Schwartz’s cultural dimensions to identify the CEO and the firm’s cultural identity, I confirm that the CEO’s culture identity has impact on the CSR policies in addition to the firm’s cultural identity. Furthermore, the CEO’s cultural identity is not constant over time and the cultural identity formed in college stage has more impact. I found that Power distance is positively correlated with the CSR policies in all three stages, and the Uncertainty avoidance is positively related to the CSR policies at the college stage and working stage. Harmony is positively related to the CSR policies in childhood stage and college stage; Indulgence is negatively related to the CSR policies at college stage and working stage, Individualism and Masculinity is negatively related to CSR policies in college stage and Embeddedness is negatively related to CR policies in childhood stage. The effect is stronger for some culture dimensions when the CEO is also the chairman of the board. Lastly, I selected appropriate instrument variables and ran two-stage regressions to confirm the above findings. The results regarding Individualism are robust in all three stages; the results of Power Distance reverse sign in working stage; the results of Embeddedness (Harmony) remain only in college stage.
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