Do Ethical Firms Bridge the Gender Gap in CEO Compensation?

42 Pages Posted: 10 Feb 2014

See all articles by Janell L. Blazovich

Janell L. Blazovich

University of St. Thomas

Kirsten A. Cook

Texas Tech University - Area of Accounting

Murphy Smith

Texas A&M University-Corpus Christi-Department of Accounting

Date Written: February 9, 2014

Abstract

Concern about the gender gap in employee compensation is an important social and business issue. Effective corporate social responsibility requires fair treatment of all employees, regardless of gender. Using a sample of firms that have been noted for their ethical behavior, this study examines whether ethical firms compensate female CEOs comparably to male CEOs. Our sample of ethical firms includes companies listed as one of the “100 Best Corporate Citizens” by Corporate Responsibility (formerly Business Ethics) magazine and with data available in Compustat, CRSP, and ExecuComp for fiscal years 1998-2009. We hypothesize that ethical firms, relative to non-list firms, close (or at least narrow) the gender gap in CEO compensation. Our findings indicate that female CEOs of ethical companies are not penalized for their gender (that is, they do not earn less than their male counterparts).

Keywords: Ethics, Corporate Social Responsibility, CEO Compensation, Gender

JEL Classification: J3, M4

Suggested Citation

Blazovich, Janell L. and Cook, Kirsten A. and Smith, Murphy, Do Ethical Firms Bridge the Gender Gap in CEO Compensation? (February 9, 2014). Journal of Accounting, Ethics and Public Policy, Vol. 15, No. 2, 2014. Available at SSRN: https://ssrn.com/abstract=2392923

Janell L. Blazovich (Contact Author)

University of St. Thomas ( email )

2115 Summit Avenue
AQU217
St. Paul, MN 55105
United States

Kirsten A. Cook

Texas Tech University - Area of Accounting ( email )

P.O. Box 42101
Lubbock, TX 79409
United States

Murphy Smith

Texas A&M University-Corpus Christi-Department of Accounting ( email )

6300 Ocean Dr
Corpus Christi, TX 78412
United States

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