A Dollar for a Tree or a Tree for a Dollar? The Behavioral Effects of Measurement Basis on Managers' CSR Investment Decision

Autor:	Adam Vitalis, Xi (Jason) Kuang, Bryan K. Church, Wei Jiang
Rok vydání:	2018
Předmět:	Finance Economics and Econometrics Actuarial science business.industry 05 social sciences 050201 accounting Investment (macroeconomics) Tree (data structure) Accounting 0502 economics and business Liberian dollar Corporate social responsibility Business 050203 business & management
Zdroj:	The Accounting Review. 94:117-137
ISSN:	1558-7967 0001-4826
DOI:	10.2308/accr-52332
Popis:	We experimentally investigate how managers' decisions to invest discretionary resources in the company's corporate social responsibility (CSR) initiatives are affected by whether the investment decision is denominated in financial or nonfinancial measures (i.e., the measurement basis used for decision making). We posit that nonfinancial measures bring attention to the society-serving nature of CSR investments, thus activating the pro-CSR social norms of the company and managers' personal CSR norms. Norm activation, in turn, influences managers' investment decisions to the extent that social norms are congruent with personal norms. As predicted, we find that the level of CSR investment is higher under a nonfinancial measurement basis than under a financial measurement basis, but only when the manager is personally supportive of CSR. Supplemental analysis indicates that CSR-supportive managers continue to invest more under a combined financial/nonfinancial measurement basis than under a financial measurement basis only. Theoretical and practical implications are discussed. JEL Classifications: C91; M41.
Databáze:	OpenAIRE
Externí odkaz:	https://explore.openaire.eu/search/publication?articleId=doi_________::c7ac5c390d65b32c4a70506cfd4575e9 https://doi.org/10.2308/accr-52332 Zobrazit plný text záznamu