Executive pay disparity, internal control, and corporate social responsibility

Abstract

This study conducts an empirical analysis to explore the impact of executive pay disparity on corporate social responsibility performance, and examines the mediating role of corporate internal control quality. The findings reveal that executive pay disparity has a significant positive effect on social responsibility performance, particularly pronounced in state-owned and small to medium-sized enterprises. Additionally, the quality of internal controls plays a crucial mediating role between executive pay disparity and social responsibility performance. By analyzing the interactions among these variables, this paper further deepens the understanding of how to adjust executive compensation strategies to optimize social responsibility performance under different industry and market conditions.