Through the rhetoric art: CEO incentives in sustainability sensitive industries
- 22 December 2021
- journal article
- research article
- Published by Emerald in Meditari Accountancy Research
- Vol. 31 (3), 576-601
- https://doi.org/10.1108/medar-09-2021-1451
Abstract
This paper aims to explore the relationship between the readability of sustainability reports and chief executive officer (CEO) attributes, comprising monetary, non-monetary incentives and personal characteristics. The study is based on an international sample of companies operating in sustainability-sensitive industries during 2016–2018. The results prove that CEO monetary incentives, as well as CEO non-monetary incentives, negatively influence the readability of sustainability reports, revealed in a positive relationship with readability indexes, by providing reports with greater reading difficulty. Additionally, this study shows evidence about the relation of complementarity between these incentives. Other CEO characteristics have no significant effect on the readability of sustainability reports. This research sheds the light on the role of CEO incentives in obfuscating sustainability information to portray the company, operating in sustainability-sensitive industries, in a favorable image.Keywords
This publication has 102 references indexed in Scilit:
- The Role of CEO’s Personal Incentives in Driving Corporate Social ResponsibilityJournal of Business Ethics, 2013
- How does CEO tenure matter? The mediating role of firm-employee and firm-customer relationshipsStrategic Management Journal, 2013
- The Impact of Operational Diversity on Corporate Philanthropy: An Empirical Study of U.S. CompaniesJournal of Business Ethics, 2012
- Compensation discussion and analysis (CD&A): Readability and management obfuscationJournal of Accounting and Public Policy, 2012
- A Global Analysis of Corporate Social Performance: The Effects of Cultural and Geographic EnvironmentsJournal of Business Ethics, 2011
- The Effects of Reporting Complexity on Small and Large Investor TradingSSRN Electronic Journal, 2010
- The Effects of CEO Pay Structure on Corporate Social PerformanceJournal of Management, 2006
- Value Orientations, Gender, and Environmental ConcernEnvironment and Behavior, 1993
- A Model of CEO DismissalAcademy of Management Review, 1988
- Sample Selection Bias as a Specification ErrorEconometrica, 1979