Ownership, executive compensation and firms’ socially responsible activities
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.