||The Effect of Corporate Social Responsibility on Executive Excess Compensation
||Department of Accountancy
Executive excess compensation
Corporate social responsibility (CSR)
近年來，高階管理者高薪爭議不斷，超額薪酬問題引發社會輿論的批判。美國關於超額薪酬之研究，大多發現超額薪酬對公司績效帶來負面之影響，故本研究採其為薪酬與績效不相當(pay without performance)一說，探討藉由企業社會責任之規範，是否得以提高企業道德標準，並提供企業適當監督，降低超額薪酬的發生。
In recent years, executive excess compensation has aroused public discontent and has become a very controversial issue. Most prior studies find that excess compensation has a negative effect on firms’ performance; we therefore consider excess compensation as symptoms of agency problem, that is, pay without performance in our study.
As expected, we find that corporate social responsibility (CSR) is significantly and negatively related to CEO and CFO excess compensation; in particular, total CSR scores and CSR strengths have a negative effect on executive excess compensation, and CSR concerns is positively related to executive excess compensation. These results indicate that firms with higher CSR performance may exhibit stricter compensation oversight in order to be responsible to stakeholders and to meet the ethical expectation of society, that is, they may be more inclined to constrain executive excess compensation. Additionally, corporate governance is negatively related to CEO excess compensation, suggesting that firms with stronger governance are less likely to pay excessive compensation to CEOs. This finding is congruent with the argument that excess compensation can be regarded as a sign of poor governance. However, we do not observe a significantly negative relationship between corporate governance and CFO excess compensation in our study.
1. Introduction 1
2. Literature Review 6
2.1 Executive Excess Compensation 6
2.2 Corporate Social Responsibility 12
2.3 Corporate Social Responsibility and Executive Compensation 18
3. Hypothesis Development 21
3.1 Corporate Governance and Executive Excess Compensation 21
3.2 CSR and Executive Excess Compensation 22
4. Research Design 24
4.1 Data Collection 24
4.2 Methodology 26
5. Empirical Results 34
5.1 Sample Selection 34
5.2 Descriptive Statistics 37
5.3 Estimating Reasonable Executive Compensation 42
5.4 Examining the Relationships between Corporate Governance, CSR and Executive Excess Compensation 44
5.5 Additional Test 51
6. Conclusion and Suggestion 62
Appendix A 68
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