The influence of CEO psychological traits on CSR disclosure patterns: a metadata perspective

The study investigated the influence of CEO psychological traits on CSR disclosure patterns: a metadata perspective. The study acknowledged that CSR reports are far more heterogeneous in tone, structure, and credibility despite attempts to add standardisation by such frameworks as the Global Reporting Initiative, the Sustainability Accounting Standards Board and the Integrated Reporting. The study also acknowledged that the nexus between executive psychology and CSR reporting is under-researched. While studies on narcissist CEOs have revealed the leaders to be prone to self-promotional behaviour, empathetic leaders may focus on inclusivity and orientation to stakeholders. The study utilised a panel of 85 non-financial listed firms on the Nigerian Exchange Group (NGX) that was unbalanced between 2011-2023. The data are collected based on notices on firm websites, the GRI database, and the Bloomberg ESG repository. Biographical information on the CEO and compensation data are captured in BoardEx, local filings/proxy statements, and annual reports of the firms. Following the elimination of the firm-years with either missing outcome or key predictors, the working panel includes 3,500 observations outcome of the firms. The finding revealed that CEO openness greatly predetermined future-focused CSR articulations and embracement of new models, in line with open-minded leadership tendencies of adopting innovative strategies and thinking into the future. The study concluded that openness of the CEOs is the most significant determining factor in the change towards adoption of novel CSR frameworks, although the other attributes have an intermediate or indirect effect. It was recommended that Firms must use empathetic CEOs to improve the prosocial tone of the disclosure without compromising technical accuracy and simplicity of the report.