CEO Education, Corporate Social Responsibility and Firm Performance Ni Luh Putu Normadewi Abdi Pradnyani
Airlangga University
Abstract
The main objective of this study is to investigate the effect of CEO education toward firm performance. Furthermore, this study also analyzes the mediating effect of corporate social responsibility (CSR) on the effect of CEO education background (business background, level education, foreign university) on firm performance. This study is unique since it sheds new insight on how a detailed CEO^s education may influence financial performance through CSR. This study used a sample of energy sector companies listed on the Indonesia Stock Exchange from 2017 to 2021. The sample in this study was 47 companies sector energy in Indonesia with a total of 235 observations. STATA statistical software was used to test the hypotheses in this study. The results show that CEO education, both economic background, education level and foreign university has a positive effect on CSR and firm performance. CSR partially mediates the relationship between CEO education and firm performance. Firm that have a CEO with a good educational background will use their abilities to decide on strategic policies such as CSR which can improve firm performance.
Keywords: CEO education, Corporate Social Responsibility (CSR), Firm Performance
