Hong and Minor (2014)

Hong, Bryan and Dylan Minor.  “Choosing to be ‘Good’: How managers determine their impact on Financial and social performance.”  Working paper (Ivey School of Business), December 2014.

From the authors' abstract:  "We investigate the relationship between a manager’s influence on firm financial and social performance...  Consistent with [the predictions of a formal agency theory model], we find that a manager’s influence on firm social performance is negatively related to their influence on financial performance. Also, as suggested by the implications of the model, we find that managers who operate in industries with more volatile financial performance and receive a lower share of compensation from incentive-based pay are more likely to have a positive influence on firm social performance."

 

Link:  http://www.kellogg.northwestern.edu/faculty/minor/Papers/CV%207%20Minor%20Choosing%20to%20be%20Good.pdf