Venue: Room 102, Building No.1, Hongkou Campus
Speaker: Shen Rui, Associate professor, School of Economics and Management, Chinese University of Hong Kong (Shenzhen)
Host: Professor Zhang Jian
Topic: CEO Pay Duration and ESG Engagement
This paper finds that CEO pay duration has a positive influence on firm ESG (environmental, social and governance) engagement. This effect is stronger when firms need more stakeholder support, face higher reputation loss risk, and have better corporate governance practice. In addition, when CEOs’ pay duration is longer, better ESG performance is associated with higher future valuation and lower crash risk. Additional instrumental variable tests suggest that our results are unlikely to be explained by endogenous factors. Taken together, the evidence is consistent with that long incentive horizon helps align the interests of stakeholders and long-term shareholders.
Shen Rui is an associate professor in the department of Accounting, School of Economics and Management in Chinese University of Hong Kong (Shenzhen). Dr. Shin was an assistant professor at Nanyang Technological University in Singapore and an assistant professor at Erasmus University’s Rotterdam School of Management. He teaches an undergraduate course in intermediate financial accounting, a graduate course in financial analysis and valuation (graduate in finance), and accounting (graduate in non-accounting). His research field mainly covers the heterogeneous understanding of accounting information and the capital markets and corporate decisions. His research findings were published in Accounting Review, Journal of Financial and Quantitative Analysis, and Strategic Management Journal.