Does CEO tenure moderate the link between corporate social responsibility and business performance in small- and medium-sized enterprises?

This study investigates the effect of CSR activities on business performance of small- and medium-sized enterprises (SMEs) in South Korea setting. Based on upper echelons theory and stakeholder theory, the study further examines CEO tenure as a potential moderator between CSR activities and business performance. The study considers four dimensions of CSR (economic, legal, ethical, and philanthropic) and two types of business performance (financial and non-financial). To test the moderating effect of CEO tenure, we divided the sample into two groups: companies with short-term tenured CEOs and long-term tenured CEOs. The data were collected from 443 CEOs of SMEs in South Korea. We used a multi-group analysis with SmartPLS 4. The study finds that CEO tenure moderates the relationship between dimensions of CSR and business performance. More specifically, the study finds that CEOs in early-stage tenure focus on philanthropic activities to drive financial performance, while their counterparts focus on economic/legal dimension. CEOs, regardless of the length of tenure, consider the philanthropic dimension helpful for improving both financial and non-financial performance. This study expands prior research by examining the relationship between CSR and business performance in SMEs, considering the impact of the CEO tenure. The findings of this study make contributions to the literature by demonstrating that CEO tenure is an important factor in linking CSR to business performance. This research also adds evidence to the CSR literature that economic and legal dimensions are considered mandatory responsibilities, and CEOs of SMEs view them as interconnected. For practical implications, this study identifies different predictors of financial performance for companies with short-term vs. long-term CEO tenure. Short-term CEOs focus on philanthropy to improve financial performance, and both long- and short-term CEOs believe that philanthropy affects the company's financial and non-financial performance.

Effects of CEO Identity on Non-family Managers' Pay Dispersion in Family Firms: A Social Comparison Perspective

The fairness of compensation has been a prominent focus for non-family managers, and pay dispersion, which reflects compensation fairness, has attracted much attention from scholars. Based on social comparison theory, this study investigates the factors that affect the pay dispersion between CEO and non-family managers. In family firms, the role of CEO, which is central in corporate governance, can be filled by either a family or a non-family member. This study provides insights into how the identity of the CEO affects pay dispersion and investigates the moderating effects of CEO tenure and institutional environment. Using the data of Chinese listed family firms from 2009 to 2015, the results show that the presence of non-family CEOs could decrease the pay dispersion between CEO and non-family managers. Empirical evidence also supports that the negative relationship between CEO identity and pay dispersion weakens when CEO tenure increases and the institutional environment matures.

The impact of CEO tenure on corporate social and environmental performance: an emerging country's analysis

This paper analyzes the extent to which CEO (chief executive officer) tenure affects the corporate social and environmental performance of all nonfinancial Chinese firms listed in Shanghai and Shenzhen stock exchanges during 2009-2015. The study uses a fixed-effect panel regression model by considering the overtime data across the firms. 2SLS regression model then is used to control the problem of endogeneity. The study confirms the negative effect (8.8%) of the increase in CEO tenure on the corporate social and environmental performance. The findings also explain that the corporate social and environmental performance of CEOs increases significantly in the initial years of service than in their later years. The study concludes that an inverse relationship between CEO tenure and corporate social and environmental performance is more pronounced with a higher percentage of independent directors, where CEOs have longer anticipated employment tenure and firms under state control, consistent with the signalling explanation of career concern and career horizon effect. Finally, the impact of CEO tenure on corporate social and environmental performance has become stronger in recent years.