Does an increase of board compensation boost the corporate philanthropy: an empirical study
Our study examines the relationship between the management board compensation and corporate philanthropy in financial institutions. By analyzing a sample of 240 cooperative banks over six years, the research investigates the impact of management board compensation on the level and extent of corporat...
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| Format: | Article |
| Language: | English |
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Taylor & Francis Group
2024-12-01
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| Series: | Cogent Economics & Finance |
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| Online Access: | https://www.tandfonline.com/doi/10.1080/23322039.2024.2416990 |
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| author | Marta Idasz-Balina Rafał Balina Noer Azam Achsani |
| author_facet | Marta Idasz-Balina Rafał Balina Noer Azam Achsani |
| author_sort | Marta Idasz-Balina |
| collection | DOAJ |
| description | Our study examines the relationship between the management board compensation and corporate philanthropy in financial institutions. By analyzing a sample of 240 cooperative banks over six years, the research investigates the impact of management board compensation on the level and extent of corporate philanthropy these institutions undertake. To estimate the models, we used the Generalized Method of Moments (GMM) approach. The findings demonstrate that the bank’s management board’s compensation significantly influences the size and scope of corporate philanthropy. Moreover, the study reveals that financial institutions consider their financial situation when formulating strategies for implementing corporate philanthropy. Notably, the analysis highlights that the increase in variable components of management board compensation has a more pronounced effect on corporate philanthropy’s volume and range than fixed compensation. These results shed light on aligning management board compensation with social responsibility objectives in financial institutions. By understanding the influence of compensation structures on corporate philanthropy, organizations can take conscious decisions to enhance their social impact while considering their financial performance. This study contributes to the growing literature on corporate social responsibility and provides valuable insights for practitioners, regulators, and stakeholders in the financial industry. |
| format | Article |
| id | doaj-art-86830e0e18b949b99961aff72942850f |
| institution | OA Journals |
| issn | 2332-2039 |
| language | English |
| publishDate | 2024-12-01 |
| publisher | Taylor & Francis Group |
| record_format | Article |
| series | Cogent Economics & Finance |
| spelling | doaj-art-86830e0e18b949b99961aff72942850f2025-08-20T02:10:20ZengTaylor & Francis GroupCogent Economics & Finance2332-20392024-12-0112110.1080/23322039.2024.2416990Does an increase of board compensation boost the corporate philanthropy: an empirical studyMarta Idasz-Balina0Rafał Balina1Noer Azam Achsani2Department of Strategy, Kozminski University, Warsaw, PolandDepartment of Finance, Warsaw University of Life Sciences, Warsaw, PolandThe School of Business, Institut Pertanian Bogor, Bogor, IndonesiaOur study examines the relationship between the management board compensation and corporate philanthropy in financial institutions. By analyzing a sample of 240 cooperative banks over six years, the research investigates the impact of management board compensation on the level and extent of corporate philanthropy these institutions undertake. To estimate the models, we used the Generalized Method of Moments (GMM) approach. The findings demonstrate that the bank’s management board’s compensation significantly influences the size and scope of corporate philanthropy. Moreover, the study reveals that financial institutions consider their financial situation when formulating strategies for implementing corporate philanthropy. Notably, the analysis highlights that the increase in variable components of management board compensation has a more pronounced effect on corporate philanthropy’s volume and range than fixed compensation. These results shed light on aligning management board compensation with social responsibility objectives in financial institutions. By understanding the influence of compensation structures on corporate philanthropy, organizations can take conscious decisions to enhance their social impact while considering their financial performance. This study contributes to the growing literature on corporate social responsibility and provides valuable insights for practitioners, regulators, and stakeholders in the financial industry.https://www.tandfonline.com/doi/10.1080/23322039.2024.2416990Corporate philanthropycooperative bankcompensationfinancial performancecorporate social responsibilityA13 |
| spellingShingle | Marta Idasz-Balina Rafał Balina Noer Azam Achsani Does an increase of board compensation boost the corporate philanthropy: an empirical study Cogent Economics & Finance Corporate philanthropy cooperative bank compensation financial performance corporate social responsibility A13 |
| title | Does an increase of board compensation boost the corporate philanthropy: an empirical study |
| title_full | Does an increase of board compensation boost the corporate philanthropy: an empirical study |
| title_fullStr | Does an increase of board compensation boost the corporate philanthropy: an empirical study |
| title_full_unstemmed | Does an increase of board compensation boost the corporate philanthropy: an empirical study |
| title_short | Does an increase of board compensation boost the corporate philanthropy: an empirical study |
| title_sort | does an increase of board compensation boost the corporate philanthropy an empirical study |
| topic | Corporate philanthropy cooperative bank compensation financial performance corporate social responsibility A13 |
| url | https://www.tandfonline.com/doi/10.1080/23322039.2024.2416990 |
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