Yonsei Business Research Institute

 A research paper co-authored by Professor Andres Guiral was presented at the 78th annual meeting of the academy of management held in Chicago on 10-14 August,  2018

 The title of his paper is "CEOs’ Debt-Based Compensation and CSR. Its effect on Risk and Performance"

Abstract : We bridge the debt based compensation discourse with stakeholder agency literature to explore the consequences of debt relative to equity based pay for multiple stakeholders, including employees, community, customer, debtholders and shareholders. We argue contractual mechanisms that create long-term debt obligations to the CEO result in better outcomes for multiple stakeholders. Also, such outcome favors the reduction of risks and the improvements in long-term performance, particularly in situations of financial distress. This suggests that inside debt deserves more attention from governance scholars and boards who are attempting to incentivize a longer-term multi-stakeholder orientation

 Link