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Executive Compensation and Misconduct: Environmental Harm
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