The Effect of CEO Compensation Structure on CSR Disclosure

Abstract

The determinants of CSR disclosure are not yet studied much. In this research, using traditional voluntary disclosure studies framework, I connect CEO compensation structure with CSR disclosure. I find that if CEOs stock compensation and debt compensation become higher, the firm discloses CSR report more frequently. These results are robust if I replace the level of CEO stock and debt compensation with relative ratio of CEOs stock and debt compensation in total compensation or log value of CEOs stock and debt compensation. Furthermore, although the founder CEO does not issue CSR disclosure frequently(Chen et al. 2008), if the founder CEO receives much stock compensation, the probability to issue CSR report increases.