Flammer, Hong, and Minor (2017)
Flammer, Caroline, Bryan Hong, and Dylan Minor. “Corporate Governance and the Rise of Integrating Corporate Social Responsibility Criteria in Executive Compensation.” Working paper (Boston University), 2017.
From authors' abstract: "Using a novel database of CSR contracting, we find that...the adoption of CSR contracting leads to i) a reduction in short-termism; ii) an increase in firm value; iii) an increase in social and environmental performance; iv) a reduction in emissions; and v) an increase in green innovations. These findings are consistent with our theoretical arguments highlighting a new form of agency conflict—the misalignment between shareholders’ and managers’ preferences for stakeholder engagement—and suggest that CSR contracting can enhance corporate governance."
LK comment: Strong paper. Won 2017 Moskowitz Prize, also Honorable Mention in 2017 IRRC annual investor research competition.