Post-traumatic growth of CEOs and corporate giving: Evidence from the Korean War

초록

This study investigates how CEOs' childhood traumatic experiences, specifically those arising from the Korean War experienced between the ages of six and twelve, influence corporate giving behaviors. Using corporate charitable contributions as a manifestation of "altruism born of suffering," we find that firms led by war-traumatized CEOs donate more than those led by non-traumatized CEOs. Our results remain robust with controls for CEO characteristics and are validated through propensity score matching, entropy balancing, turnover analysis, and placebo tests. In addition, we find that the effects of CEO war trauma on corporate giving are more pronounced when CEOs are highly educated, powerful, and have longer career concerns and that corporate giving by firms led by war-traumatized CEOs enhances future firm value, a benefit not observed in firms led by non-traumatized CEOs. Overall, this study highlights the impact of CEOs' post-traumatic growth on corporate policies.

키워드