Entrenchment through Corporate Social Responsibility: Evidence from CEO Network Centrality
International Review of Financial Analysis,
This paper investigates whether CEOs with high network centrality entrench themselves when taking CSR decisions and how that affects firm value. Evidence portrays that CSR in firms with more central CEOs is negatively associated with firm-value, and this association is mitigated by better corporate governance mechanisms and by geographic areas of higher social capital. This negative association is lower during disasters which reflect periods of positive exogenous shocks to the societal demand for CSR. Furthermore, CSR by more central CEOs is positively associated with future increases in CEO compensation and future improvement in a CEO's network position. The findings reveal that, in general, central CEOs use CSR to entrench themselves and gain private benefits rather than increase shareholder value.
08.04.2020 • 5/2020
Economy in Shock – Fiscal Policy to Counteract
The coronavirus pandemic is triggering a severe recession in Germany. Economic output will shrink by 4.2% this year. This is what the leading economics research institutes expect in their spring report. For next year, they are forecasting a recovery and growth of 5.8%.
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12.03.2020 • 4/2020
Global economy under the spell of the coronavirus epidemic
The epidemic is obstructing the economic recovery in Germany. Foreign demand is falling, private households forgo domestic consumption if it comes with infection risk, and investments are postponed. Assuming that the spread of the disease can be contained in short time, GDP growth in 2020 is expected to be 0.6% according to IWH spring economic forecast. Growth in East Germany is expected to be 0.9% and thus higher than in West Germany. If the number of new infections cannot be decreased in short time, we expect a recession in Germany.
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Gift-exchange in Society and the Social Integration of Refugees: Evidence from a Field, a Laboratory, and a Survey Experiment
IWH Discussion Papers,
Refugee integration needs broad support from society, but only a minority is actively engaged. Given that most individuals reciprocate kind behaviour, we examine the idea that the proportion of supporters is increasing as a reciprocal response to refugees’ contributions to society through volunteering. Our nationwide survey experiment shows that the intentions to contribute time and money rise significantly when citizens learn about refugees’ pro-social activities. Importantly, this result holds for individuals who have not been in contact to refugees so far. We complement this investigation by experiments in the lab and the field – which confirm our findings for actual behaviour.
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