Ownership, executive compensation and firms’ socially responsible activities

Research project
Active research
Project size
1 470 000 SEK
Project period
2022 - 2024
Project owner
Department of Business Administration, School of Business, Economics and Law

Handelsbankens forskningsstiftelser

Short description

The goal of the project is to examine the relationship between shareholder ownership, compensation scheme, and firms’ socially responsible (CSR) activities. We focus on understanding the potential conflicts between profit maximization and socially responsible activities through ownership, corporate governance, and the change in firm and director behavior. The project will allow us to better understand which type of owners are informed and have a monitoring role in public firms. Considering the heterogeneity in ownership when designing CSR related policies will allow policy makers to provide more efficient incentives for socially responsible businesses.

The project includes three papers:

  • Paper 1 explores the relationship between ownership and CSR information extracted from business descriptions in initial public offerings prospectuses.
  • Paper 2 examines and compares the effects of firms’ local vs. global ownership and local vs. global CSR activities on firm performance.
  • Paper 3 explores the interplay between ownership, compensation linked to the CSR outcomes, talented directors, and firm performance.

Research team

Taylan Mavruk, professor, Department of Business Administration, works on papers 1, 2, and 3.

Russell Wermers, professor, Robert H. Smith School of Business, University of Maryland College Park, USA, works on paper 1.

Van Diem Nguyen, dr., Department of Business Administration, works on paper 3.

Swarnodeep Homroy, associate professor, Faculty of Economics and Business, University of Groningen, works on paper 3.