The Relationship between Corporate Social Responsibility and Types of CEO Turnover : Evidence from US Firms

This study examines the relationship between corporate social responsibility (CSR) and different types of CEO turnover. Our findings based on a sample of over 2,500 publicly-traded US firms clarify how firms’ CSR engagement relates to CEO turnover by reason and source of new CEO. Firms with higher CSR scores are positively associated with the firing of CEOs and negatively associated with normal retirements. Low CSR firms are more likely to experience contender successions that indicate a power struggle within the firm’s management. This relationship becomes stronger when other members of the top management team leave a firm at the time of CEO turnover. These results suggest that CSR measures serve as an indicator of good corporate governance