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Relationship of CEO inside debt and corporate social performance: A data envelopment analysis approach

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  • Wu, Tai-Hsi
  • Lin, Mei-Chen

Abstract

This study introduces a new measure that can accurately evaluate corporate social performance by adopting a data envelopment analysis (DEA) model. The study uses the DJSI-listed companies as a benchmark in setting the relative magnitudes of the weights associated with the inputs and outputs in the DEA model presented. The model, in turn, allows us to examine the effect of CEO inside debt holdings on corporate social responsibility (CSR) performance, with the empirical results of that examination indicating a positive relationship between CEO inside debt and CSR performance. The results further indicate that this positive effect of CEO inside debt is mainly driven by deferred compensation, while defined benefit pension provides less incentive when making CSR engagement decisions.

Suggested Citation

  • Wu, Tai-Hsi & Lin, Mei-Chen, 2019. "Relationship of CEO inside debt and corporate social performance: A data envelopment analysis approach," Finance Research Letters, Elsevier, vol. 29(C), pages 308-314.
    • Handle: RePEc:eee:finlet:v:29:y:2019:i:c:p:308-314
    DOI: 10.1016/j.frl.2018.08.002
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    Cited by:

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    6. Carlos Serrano-Cinca & Yolanda Fuertes-Callén & Beatriz Cuellar-Fernández, 2021. "Managing for Stakeholders Using Multiple-Criteria Decision-Making Techniques," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 157(2), pages 581-601, September.
    7. Tianyi Ma & Minghui Jiang & Xuchuan Yuan, 2019. "Pay Me Later is Not Always Positively Associated with Bank Risk Reduction—From the Perspective of Long-Term Compensation and Black Box Effect," Sustainability, MDPI, vol. 12(1), pages 1-26, December.
    8. Zhang, Zhuang & Chizema, Amon & Kuo, Jing-Ming & Zhang, Qingjing, 2022. "Managerial risk-reducing incentives and social and exchange capital," The British Accounting Review, Elsevier, vol. 54(6).
    9. Petridis, Konstantinos & Tampakoudis, Ioannis & Drogalas, George & Kiosses, Nikolaos, 2022. "A Support Vector Machine model for classification of efficiency: An application to M&A," Research in International Business and Finance, Elsevier, vol. 61(C).

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    Keywords

    Inside debt; CSR; DEA;
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