Research On The Influence Of Listed Companies’ Corporate Social Responsibility On Executive Compensation

In recent years, corporate social responsibility has become a heat. More and morecompanies have realized the importance of fulfilling their social responsibility. Meanwhile,the executive compensation has always been the focus of people’s attention.This article used the A-share listed companies in Shenzhen Stock Market as samples,selecting the relevant financial data in annual reports they disclosed from2009to2011. Withthe used of descriptive statistical analysis and multiple regression analysis, I made a empiricalresearch on the relationship between corporate social responsibility and executivecompensation, in the hope of reinforcing the attention of corporate executives on socialresponsibility from the prospect of compensation stimulation, further to increase executives’individual economic interests and promote the development of enterprises and social progress.This article is divided into five parts.First part is introduction. This part mainly discusses the background, target, researchmethod and innovation of this research and briefly describes the research contents andframework.Second part is the summary of relevant theories and literatures. This part mainly talksabout the related research on corporate social responsibility and executive compensation.Then it summarizes the representative research conclusions and evaluates literatures homeand abroad.Third part is the significance of corporate social responsibility. This part defines themeaning and liability of corporate social responsibility on the theory of stakeholders. It thenanalyzes the importance of corporate social responsibility to the society and corporate.Fourth part is empirical analysis. It states the data source, defines variables and set themodel. After regression analyzing of each index and finds out the relationship betweenexecutive compensation and every index, this article furthers makes a computation on theaggregative indicator of corporate social responsibility and conducts a regression analysis onbetween that and executive compensation to conclude the influence of social responsibility onexecutive compensation.Fifth part is conclusions and suggestions. In conclusion of the former five parts, thisarticle provides suggestions on how executives perform their social responsibility, in the hopeto bring their attention, increase the fulfillment degree and foster the development ofcorporate and society.By the use of empirical research, it comes to a conclusion that the corporate fulfillingsocial responsibility to stakeholders of shareholders, employees, creditors, government and community has an evidently positive motivation on executive compensation, while thefulfillment to stakeholders of clients and suppliers has a negative effect on the executivecompensation. Though the analysis from different prospects has different results, the overallconclusion is still positive relevant, which means the corporate social responsibility can be amotivation to the executive compensation.