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Faculty Research Seminar Series

February 10, 2021 @
12:45 p.m.
- 1:45 p.m. Eastern Time
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Date: February 10 2021
Time: 12:45pm EST
Type of Event: Online

Event will be held via Zoom. See below for contact information.

The School of Management has announced the next presentation in its Faculty Research Seminar Series, to take place on February 10, from 12:45pm – 1:45pm, via Zoom.

Visiting faculty member Hong Zhou will present her work on the effect of CSR-related executive compensation on corporate risk.

Title:  Executive Compensation Linked to Corporate Social Responsibility and Firm Risk

Abstract: This paper examines the effect of executive compensation linked to corporate social responsibility (CSR) on corporate risk. Using a two-stage least squares (2SLS) regression estimation to treat endogeneity, we find that CSR linked compensation is negatively associated with total and idiosyncratic measures of firm risk. The results are robust to matched sample analysis. The risk-reducing effect is more pronounced when risk is above optimal level. We also find that CSR linked compensation helps in reducing the positive impact of incentives from option-based compensation (i.e. vega of portfolio of executive options) on firm risk. These findings suggest that boards use CSR linked compensation to manage executive risk taking.

Join via Zoom 

Please contact Professor Fei Fang (FFang@clarku.edu) for Zoom link information.

Details

Date:
February 10, 2021
Time:
12:45 p.m. - 1:45 p.m.

Venue

Zoom