Behavioral Agency Theory and Corporate Social Irresponsibility

Tanusree Jain, Rashid Zaman

Publikation: Bidrag til bog/antologi/rapportKonferenceabstrakt i proceedingsForskningpeer review

Abstract

The behavioral agency theory (BAM) posits that executive risk preferences are influenced by losses to their current option wealth relative to gains from their prospective option wealth. Accordingly, current option wealth attenuates risk-taking while prospective option wealth amplifies risk-taking. In the context of corporate irresponsible behaviors, this study attempts to advance BAM by theorizing how the presence of conditions that give rise to distributive and procedural injustice in CEO compensation can further amplify the positive effects of CEO prospective option wealth on risk-taking, thereby destroying stakeholder value. Our findings based on a longitudinal cross-sectional sample of 8,669 firm-year observations for the period 2001-2018 support our theorization that CEO perceptions of unfair compensation amplifies excessive risk-taking thereby increasing corporate social irresponsibility. Our study has important implications for advancing BAM and for the study and design of executive compensation.
OriginalsprogEngelsk
TitelProceedings of the Eighty-third Annual Meeting of the Academy of Management
RedaktørerSonia Taneja
Antal sider1
UdgivelsesstedBriarcliff Manor, NY
ForlagAcademy of Management
Publikationsdato2023
DOI
StatusUdgivet - 2023
BegivenhedThe Academy of Management Annual Meeting 2023: Putting the Worker Front and Center - Boston, USA
Varighed: 4 aug. 20238 aug. 2023
Konferencens nummer: 83
https://aom.org/events/annual-meeting/future-annual-meetings/2023-putting-the-worker-front-and-center

Konference

KonferenceThe Academy of Management Annual Meeting 2023
Nummer83
Land/OmrådeUSA
ByBoston
Periode04/08/202308/08/2023
Internetadresse
NavnAcademy of Management Annual Meeting Proceedings
ISSN0065-0668

Citationsformater