The Role of CEO Power on CSR Reporting: The Moderating Effect of Linking CEO Compensation to Shareholder Return.

Pucheta-Martínez, María Consuelo; Gallego-Álvarez, Isabel; Shafieezadeh, Abdollah

The aim of this research was to provide further evidence of the impact of the power of the Chief Executive Officer (CEO) on corporate social responsibility (CSR) disclosure. Additionally, we explore the moderating role of CEO compensation linked to shareholder return on the association between CEO power and CSR disclosure. The theories used follow agency theory and stakeholder theory and the sample comprised 9182 international firm-year observations collected from the Thomson Reuters database from 2009 to 2018. Our model was estimated using the generalized method of moments (GMM) estimator. The results found that CEO power was positively associated with CSR disclosure, contrary to our expectations. Additionally, our evidence also shows that CEO compensation linked to shareholder return plays a positive moderating role on the relationship between CEO power and CSR reporting.

THOMSON Reuters Corp.; SOCIAL responsibility of business; GENERALIZED method of moments; CHIEF executive officers; SOCIAL accounting; STAKEHOLDER theory

Sustainability (2071-1050), 2021, Vol 13, Issue 6, p3197

2071-1050

Academic Journal

10.3390/su13063197