Corporate Social Responsibility’s Impact On The Executive Compensation

In recent years, there are many cases about enterprises destroying the environment and damaging the interests of customers, leading to more and more people begin to attach importance to the topic of social responsibility. The events of high compensation that occurred at home and abroad push the topic of executive compensation to a high level. The studies about these two topics at home and abroad are increasing in recent years, while only a few research choose to combine one of these two topics with another, especially in our country, most of the existing research appeared in the last two years. Therefore, this paper will combine these two important and popular topics in present to do the empirical research.Considering the specialty of monopoly industries in China, this paper choose the monopoly industries listed companies as the object, and select three years from 2012 to 2014 as sample date to do the empirical research, hoping to enrich the theoretical achievements of our country, and make a little guidance to our country’s reality.This paper is divided into four parts. The first part is the preface. Mainly introduce the background and significance of this paper, and summary some related studies in the domestic and foreign countries. At last introduce the content, line and methods of this research, and put forward the possible innovation places of the paper. The second part is theoretical basis. Mainly introduce the definition of main concepts and theoretical basis related to the paper. The third part is the empirical analysis. Using descriptive statistics analysis, correlation analysis and two multiple regression analysis to deal the sample data, then analyze the output and explain the results. During the process of regression, the paper uses the corporate social responsibility as the independent variable and executive compensation as dependent variable. To the independent variable, according to the theory of stakeholders, the paper choose six partial indexes and a comprehensive index to measure the corporate social responsibility, and make a regression analysis between them and executive compensation respectively, and make an explanation on the results. The fourth part is the conclusions, suggestions and prospect of the paper.Through the empirical research, it comes to a conclusion that the monopoly industries listed companies in our country fulfilling social responsibility to stakeholders of creditors, clients and government has an insignificantly negative effect on the executive compensation, while the fulfillment to stakeholders of shareholders, staffs, suppliers has an evidently positive effect on the executive compensation. The comprehensive index also has an evidently positive effect on the executive compensation.