CEO superstitions and CSR performance

Superstitions are typically seen as beliefs without scientific grounding. However, they can also influence individuals’ risk perceptions and subsequent behaviors. In this study, we provide evidence that CEO superstitious beliefs about bad luck—triggered by their “zodiac year,” which recurs every 12 years in Chinese culture—are associated with increased corporate social responsibility (CSR) activities. Specifically, CEOs are approximately one percentage point more likely to increase CSR investments during their zodiac year compared to their non-zodiac counterparts. We further show that this relationship is amplified in situations where the effect of superstitions is especially salient (i.e., CEOs without returnee experience, CEOs with higher job uncertainty, and CEOs with lower personal ability). Moreover, institutional CSR activities, rather than technical CSRs, are more likely to be influenced by CEO superstitions. In further analyses, we find that such superstition-driven CSR engagements are suboptimal and may destroy shareholder wealth. Overall, our study provides new insights into the role of managerial beliefs and preferences in shaping CSR decisions.