AGING CEOS LEGACY: STRATEGIC CSR OR EMPIRE BUILDING? CELEBRITY STATUS AND BOARD INDEPENDENCE CONTINGENCIES

This work examines the effect of the CEOs' age on the likelihood of pursuing legacy enhancing activities. The premise is that aging CEOs, who have a high level of entrenchment, are more likely to invest in legacy enhancing activities. While some aging CEOs cement their legacy by pursuing empire building activities, others choose to focus on corporate social responsibility (CSR) that also benefits the firm financially. The presence of an independent board can influence the type of legacy the CEOs may pursue, especially if the chairman of the board is not the CEO themselves. Celebrity CEOs, who have been awarded various honors for their perceived accomplishments, have a high level of power, overconfidence and hubris, and are thus more likely to invest heavily into building their legacy.