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

Mohamed Khenissi (), Amal Hamrouni and Nadia Ben Farhat Toumi ()
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Mohamed Khenissi: Institut d'Administration des Entreprises (IAE) - Lyon, MAGELLAN - 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]

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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.

Keywords: CEO incentive pay; CSR criteria; Financial performance; CSR performance (search for similar items in EconPapers)
Date: 2022-12
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Citations: View citations in EconPapers (1)

Published in Finance Research Letters, 2022, 50, pp.103213. ⟨10.1016/j.frl.2022.103213⟩

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Persistent link: https://EconPapers.repec.org/RePEc:hal:journl:hal-03771680

DOI: 10.1016/j.frl.2022.103213

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