The Power of Belief: CEO Political Belief and Corporate Violations

Abstract

Political beliefs shape individuals' perceptions and ideas and profoundly influence their decision-making behaviour. Using this as a starting point, this paper examines the impact of the CEO's political beliefs on corporate violations. The study found that the political beliefs of party CEOs, which are strongly influenced by the ideology of "working for the people, obeying the law and being clean", effectively discourage corporate misconduct, and that this discouragement is influenced by the CEO's past and current environment. The CEO's past experience of living in a revolutionary old region and the external red cultural environment of the company he is currently working in have a strengthening effect on his political beliefs, further enhancing the inhibiting effect of party members' CEO political beliefs on corporate irregularities. This paper incorporates the political beliefs of executives into the framework of corporate non-compliance research, revealing the important role of enhancing the ideological capabilities of party members in curbing corporate non-compliance, which not only broadens the thinking of behavioral governance of listed companies, but also provides a basis for strengthening the cultivation of political beliefs of party members and bringing into play the pioneering role of party members in economic development.