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Executive compensation indexed to corporate social responsibility and firm performance: empirical evidence from France

Author

Listed:
  • Mohamed Khenissi

    (Institut d'Administration des Entreprises (IAE) - Lyon, Laboratoire de Recherche Magellan - UJML - Université Jean Moulin - Lyon 3 - Université de Lyon - Institut d'Administration des Entreprises (IAE) - Lyon)

  • Amal Hamrouni

    (Excelia Group | La Rochelle Business School)

  • Nadia Ben Farhat Toumi

    (UEVE - Université d'Évry-Val-d'Essonne, LITEM - Laboratoire en Innovation, Technologies, Economie et Management (EA 7363) - UEVE - Université d'Évry-Val-d'Essonne - Université Paris-Saclay - IMT-BS - Institut Mines-Télécom Business School - IMT - Institut Mines-Télécom [Paris])

Abstract

This study examines the effect of introducing CSR criteria into CEO incentive compensation on the financial and extra-financial performance of French companies listed on the SBF 120 index. Based on panel data from 102 companies over a five-year period between 2014 and 2019, the empirical analysis shows that the inclusion of CSR criteria in compensation contracts improves environmental, societal and governance performance. However, the inclusion of these criteria has a negative impact on financial performance as measured by Tobin's q.

Suggested Citation

  • Mohamed Khenissi & Amal Hamrouni & Nadia Ben Farhat Toumi, 2022. "Executive compensation indexed to corporate social responsibility and firm performance: empirical evidence from France," Post-Print hal-03771680, HAL.
    • Handle: RePEc:hal:journl:hal-03771680
    DOI: 10.1016/j.frl.2022.103213
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    References listed on IDEAS

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