An International Meeting of the American Accounting Association American Accounting Association 2006 Annual Meeting August 6–9, 2006 Washington, D.C.

Lois S. Mahoney
Eastern Michigan University

Linda Thorne
York University

Donna Bobek
University of Central Florida

Abstract: Prior research has presented conflicting results about the relationship between executive compensation and corporate social responsibility. However, it is not clear whether the reported differences in the association between corporate social responsibility (CSR) and CEO compensation are due to the methodological approaches and data sets considered, or can be attributed to national institutional context. To address this question, our study adopts similar statistical and methodological approaches for the same time period and compares the association between CSR and CEO compensation for US and Canada. Our results suggest a significant association between CSR and CEO salary for both countries. It appears that while CEOs with higher salaries are less attentive to social issues in the U.S., in Canada, CEOs with higher salaries are more attentive to CSR strengths.

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