Sustainability | Free Full-Text | Management Overconfidence and CSR Activities in Korea with a Big Data Approach


We examined the connection between administration traits and company social duty (CSR) and this relationship was differentiated by the extent of company governance. Our evaluation was undertaken in companies listed on the Korean Inventory Alternate (KSE) from 2006 to 2015. We employed Odd Least Sq. (OLS) regression after clustering the usual errors on the agency stage with a purpose to look at these relationships. The KEJI (Korea Financial Justice Institute) index was used as a proxy for CSR and an enormous data-based proxy estimated from multimedia was used as the extent of promoting. We confirmed that there’s a constructive relationship between overconfident administration and CSR actions. We then categorized the CSR actions as major and social actions and located that overconfident administration is extra aggressive in major CSR actions. As well as, overconfident administration makes fewer CSR expenditures when the administration is in a chaebol agency however promotes extra CSR commercial. This discovering signifies that chaebol affiliation controls overinvestment in CSR actions however promotes CSR commercials by overconfident managers. Equally, we discovered constant outcomes with overconfident owner-managers. Prior literature on CSR actions focuses on the impression of CSR actions on agency efficiency. On this paper, we elucidated the determinants of CSR actions, in order that this analysis contributes to companies’ decision-making about sustainable administration. Our estimation of CSR variables with large information approaches can even information future analysis on this difficulty. We count on our research for use as a reference for decision-making by related authorities and stakeholders.

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