Heterogeneity in the integration of ESG measures in executive compensation: Determinants, contracting details and outcomes

IF 5.5 3区管理学 Q1 BUSINESS, FINANCE British Accounting Review Pub Date : 2024-07-09 DOI:10.1016/j.bar.2024.101440

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Abstract

Corporate social responsibility (CSR) contracting incorporates environmental, social, and governance (ESG) related measures in executive compensation plans. Current research on this practice is limited to a US setting, despite global adoption. We investigate heterogeneity in CSR contracting using data from 59 countries between 2002 and 2019. We find that besides firm-level past ESG performance and the industry-level adoption rate, country-level ESG regulations have significant explanatory power in firms’ tendencies to adopt CSR contracting. Hand-collected data reveal significant cross-country differences in CSR contracting details. Finally, CSR contracting is positively associated with subsequent financial performance only in countries with more stringent ESG regulations and stronger legal enforcement. In contrast, CSR contracting is associated with subsequent ESG performance regardless of country-level factors.

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将环境、社会和治理措施纳入高管薪酬的异质性：决定因素、合同细节和结果

企业社会责任（CSR）合同将环境、社会和治理（ESG）相关措施纳入高管薪酬计划。尽管这种做法已在全球范围内得到采用，但目前有关这种做法的研究仅限于美国。我们利用 2002 年至 2019 年间 59 个国家的数据调查了企业社会责任契约的异质性。我们发现，除了公司层面的过去 ESG 表现和行业层面的采用率外，国家层面的 ESG 法规对公司采用企业社会责任契约的倾向也有显著的解释力。手工收集的数据揭示了企业社会责任契约细节的显著跨国差异。最后，只有在环境、社会和公司治理法规更严格、法律执行力度更大的国家，企业社会责任契约才与后续财务业绩正相关。与此相反，无论国家层面的因素如何，企业社会责任契约都与后续的环境、社会和治理绩效相关。

本文章由计算机程序翻译，如有差异，请以英文原文为准。

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来源期刊

British Accounting Review BUSINESS, FINANCE-

CiteScore

8.60

自引率

3.90%

发文量

审稿时长

76 days

期刊介绍： The British Accounting Review*is pleased to publish original scholarly papers across the whole spectrum of accounting and finance. The journal is eclectic and pluralistic and contributions are welcomed across a wide range of research methodologies (e.g. analytical, archival, experimental, survey and qualitative case methods) and topics (e.g. financial accounting, management accounting, finance and financial management, auditing, public sector accounting, social and environmental accounting; accounting education and accounting history), evidence from UK and non-UK sources are equally acceptable.

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