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Corporate social responsibility and CEO compensation revisited: Do disaggregation, market stress, gender matter?

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  • Rekker, Saphira A.C.
  • Benson, Karen L.
  • Faff, Robert W.

Abstract

In this paper we examine the relation between corporate social responsibility (CSR) and CEO compensation. Both CSR and CEO compensation are disaggregated into various sub-components. We also consider impact of the market crisis and the relevance of gender. Our results show that there is a negative relation between total compensation and socially responsible firms. However, disaggregation of CSR into its components matters. Dimensions of CSR that are relevant are employee relations, environment and diversity. Our results also show that the financial crisis and gender matter: once they are accounted for interactively in the model, the general relation between CSR and compensation weakens.

Suggested Citation

  • Rekker, Saphira A.C. & Benson, Karen L. & Faff, Robert W., 2014. "Corporate social responsibility and CEO compensation revisited: Do disaggregation, market stress, gender matter?," Journal of Economics and Business, Elsevier, vol. 72(C), pages 84-103.
  • Handle: RePEc:eee:jebusi:v:72:y:2014:i:c:p:84-103
    DOI: 10.1016/j.jeconbus.2013.11.001
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    References listed on IDEAS

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    Cited by:

    1. Julija Winschel & Martin Stawinoga, 2019. "Determinants and effects of sustainable CEO compensation: a structured literature review of empirical evidence," Management Review Quarterly, Springer, vol. 69(3), pages 265-328, September.
    2. Kuang-Hua Hu & Sin-Jin Lin & Ming-Fu Hsu, 2018. "A Fusion Approach for Exploring the Key Factors of Corporate Governance on Corporate Social Responsibility Performance," Sustainability, MDPI, Open Access Journal, vol. 10(5), pages 1-18, May.

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