IDEAS home Printed from https://ideas.repec.org/a/bla/ausact/v35y2025i3p241-256.html
   My bibliography  Save this article

The Impact of the CEO–Employee Pay Gap on Corporate Social Responsibility

Author

Listed:
  • Yiqing Tan

Abstract

This study analyzes how compensation gaps influence corporate social responsibility (CSR) by focusing on the chief executive officer (CEO)–employee pay ratio. The empirical results reveal that companies with larger CEO–employee pay ratios exhibit worse CSR performance. In addition, this study demonstrates that the negative relationship between the CEO–worker compensation gap and CSR performance is moderated by board structure, institutional shareholdings, and managerial ability. The robustness of the main findings is guaranteed by addressing the endogeneity problem and using alternative measures. Collectively, these findings highlight the impact of the CEO–worker compensation gap on CSR and provide empirical evidence from the perspective of social welfare that can be used by researchers, regulators, and practitioners to evaluate pay gap regulations.

Suggested Citation

  • Yiqing Tan, 2025. "The Impact of the CEO–Employee Pay Gap on Corporate Social Responsibility," Australian Accounting Review, CPA Australia, vol. 35(3), pages 241-256, September.
    • Handle: RePEc:bla:ausact:v:35:y:2025:i:3:p:241-256
    DOI: 10.1111/auar.70008
    as

    Download full text from publisher

    File URL: https://doi.org/10.1111/auar.70008
    Download Restriction: no
    File URL: https://libkey.io/10.1111/auar.70008?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:bla:ausact:v:35:y:2025:i:3:p:241-256. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Wiley Content Delivery (email available below). General contact details of provider: http://www.blackwellpublishing.com/journal.asp?ref=1035-6908 .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.