Having a daughter isn’t the only factor shaping how CEOs think or act, but it’s an important factor.
The article focused on a recently published research study that Dr. Cronqvist co-authored with Frank Yu, associate professor of finance at China Europe International Business School in Shanghai. This study is published in the December issue of the Journal of Financial Economics.
The results of this study suggest that when a CEO has a daughter, “the company’s corporate-social-responsibility rating is about 9.1% higher than that of a median firm. The study analyzed familial information of 416 CEOs from S&P 500 companies.”
Dr. Cronqvist explained that the study goes beyond an existing correlation. When a CEO with a daughter joins a company, the company becomes more socially responsible, as opposed to when a CEO without a daughter joins, and the reverse effect occurs.
“Having a daughter isn’t the only factor shaping how CEOs think or act, but it’s an important factor,” he says.