Executive Compensation and Misconduct: Environmental Harm

Dylan Minor
2016 Social Science Research Network  
We explore the relationship between managerial incentives and misconduct using the setting of environmental harm. We ...nd that high powered executive compensation can increase the odds of environmental law-breaking by 40-60% and the magnitude of environmental harm by over 100%. We document similar results for the setting of executive compensation and illegal ...nancial accounting. Finally, we outline some managerial and policy implications to blunt these adverse incentive e¤ects.
doi:10.2139/ssrn.2714438 fatcat:4on6qkcvffam5j6dk4bghmdarm