TRSM Research Seminar by Dr. Yi Feng

Title: Common Directorship and Corporate Social Responsibility

Abstract: This paper explores the role of common directorship in propagating corporate social responsibility (CSR) practices across firms. Using a sample of 2,380 U.S. public firms from 2003 to 2018, we find that firms’ CSR ratings are positively associated with the CSR measures at their overlapping firms through the common directors in the boardroom. In addition, the year-to-year changes in the CSR measures are directly influenced by the gaps between the firms and their overlapping peers. We further discover that independent directors and directors with more outside board seats are more influential in spreading CSR practices. Large, profitable, and complex firms are more inclined to learn CSR practices from overlapping firms. The results are robust to various endogeneity tests.

Bio: Dr. Yi Feng is an Associate Professor in the School of Accounting and Finance at the Ted Rogers School of Management. Her academic research focuses on corporate finance issues, including executive compensation, corporate governance, and corporate social responsibility. She is also interested in the research aspect of financial education, such as utilizing various electronic spreadsheet tools for pedagogical improvements. She has published articles in the Journal of Banking and Finance, Financial Markets, Institutions and Instruments, the Journal of Economics and Business, and Spreadsheets in Education. She currently teaches undergraduate courses in corporate finance and valuation.