The Effect of Negative Corporate Social Responsibility Events on CEO Turnovers and CEO Compensations
Shu-Miao Lai/Bachelor Degree Program in Ocean Business Management, National Taiwan Ocean University
Chih-Liang Liu/Institute of Business and Management, National Yang Ming Chiao Tung University
Chung-Yueh Wu/Taiwan Mobile Co. Ltd.
Abstract
This study explores how the presence and severity of negative corporate social responsibility (i.e., NCSR) events affect CEO turnovers and CEO compensations by collecting data from the Taiwan Economic Journal (TEJ) database from 2005 to 2022. The results show that companies likely terminate senior executives in subsequent years on NCSR events, resulting in CEO turnovers. Moreover, we find that the severity of NCSR is positively related to CEO turnovers. Similarly, the presence and severity of NCSR events are negatively related to CEO compensations. The positive relation between NCSR events and CEO turnovers is stronger for firms with higher CSR performance, higher industry growth opportunities, and lower board member turnover. Consequently, this research offers new insights into NCSR events’ impact on CEO turnovers and compensations.
Keywords
Negative corporative social responsibility eventsCEO turnoverCEO compensationStakeholder
1836 Views 86 Downloads