Tran, HT and Pham, HST orcid.org/0000-0002-0764-9182 (2022) How does CEO incentive matter for corporate social responsibility disclosure? Evidence from global corporations based in the USA. International Journal of Business Governance and Ethics, 16 (4). pp. 463-480. ISSN 1477-9048
Abstract
This study investigates the effect of each component of CEO compensation, including cash-based component (salary and bonus), equity-based component (stock grant and stock option), and other perks on disclosure of corporate social responsibility (CSR) information of global firms. The study uses 2SLS IV estimation method and a sample of 580 US-based firms in a seven-year period. The study finds that equity-based remuneration has a significant and positive impact on a firm's CSR disclosure while CEO salary, bonus, and other perquisites have significant detrimental effects on CSR disclosure. The paper indicates that a CEO's motivation for CSR reporting might arise from stock grant and option; meanwhile, salary, bonus and other perks could demotivate the CEO in this regard. Our findings offer insight into designing CEO compensation packages to meet shareholders' interests and stakeholders' expectations for a sustainable business.
Metadata
Item Type: | Article |
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Authors/Creators: |
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Copyright, Publisher and Additional Information: | Copyright © 2022 Inderscience Enterprises Ltd. This is an author produced version of an article, published in International Journal of Business Governance and Ethics. Uploaded in accordance with the publisher's self-archiving policy. |
Keywords: | corporate social responsibility, CSR, disclosure, CEO, incentive, compensation, remuneration |
Dates: |
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Institution: | The University of Leeds |
Academic Units: | The University of Leeds > Faculty of Business (Leeds) > International Business Division (LUBS) (Leeds) |
Depositing User: | Symplectic Publications |
Date Deposited: | 01 Dec 2022 16:49 |
Last Modified: | 22 Aug 2023 00:13 |
Status: | Published |
Publisher: | Inderscience |
Identification Number: | 10.1504/IJBGE.2021.10039956 |
Open Archives Initiative ID (OAI ID): | oai:eprints.whiterose.ac.uk:193610 |