earticle

영어

To shed light on business group (BG) incentives for corporate social responsibility (CSR) activities, this study investigates the effect of investment efficiency for CSR on the performance-pay sensitivity and then analyses how this relationship depends on BGs and Non-BGs. There was a significantly positive relationship between corporate financial performance (CFP) and management pay. This result indicates that CFP is a decisive factor in increasing management pay. This relationship is more pronounced in firms that have used resources efficiently for CSR. In other words, the higher the investment efficiency for CSR, the higher the reliability of CFP, and the higher the weight that CFP reflects in management pay. Furthermore, there was a significant negative relationship between the 3-way interaction variable (CFP, CSR efficiency, and BGs) and management pay. This result shows that managerial incentives for CSR in BG firms are related to passive ethical or legal motivation rather than profit-oriented strategic objectives. This study suggests that not all managers in BGs are involved in CSR activities to increase their compensation. Barring only some exceptions, relatively little is known about the incentives for BGs managers to engage in CSR.