The effect of compensation and religiosity on managers’ CSR decision
This study aims to examine the relationship between compensation schemes and religiosity and managers’ investment decisions in CSR. We argue that compensation scheme and managers’ level of religiosity associate with managers’ choice whether to invest in value-increasing or value-decreasing CSR. Data...
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| Format: | Article |
| Language: | English |
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Universitas Merdeka Malang
2020-07-01
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| Series: | Jurnal Keuangan dan Perbankan |
| Subjects: | |
| Online Access: | http://jurnal.unmer.ac.id/index.php/jkdp/article/view/4063 |
| _version_ | 1818950662476529664 |
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| author | Poppy Dian Indira Kusuma Wiwiek Rabiatul Adawiyah Bambang Agus Pramuka Zahrotush Sholikhah |
| author_facet | Poppy Dian Indira Kusuma Wiwiek Rabiatul Adawiyah Bambang Agus Pramuka Zahrotush Sholikhah |
| author_sort | Poppy Dian Indira Kusuma |
| collection | DOAJ |
| description | This study aims to examine the relationship between compensation schemes and religiosity and managers’ investment decisions in CSR. We argue that compensation scheme and managers’ level of religiosity associate with managers’ choice whether to invest in value-increasing or value-decreasing CSR. Data were collected through a laboratory experiment which involved 100 participants. The Chi-square test results show that managers who work under a performance-based compensation tend to choose a value-increasing CSR. Meanwhile, managers who work under nonperformance-based compensation tend to choose a value-decreasing CSR. However, this study failed to prove the relationship between manager’s religiosity level and CSR investment decision made by managers. A small variance of our participants’ religiosity level may lead to this finding. This research contributes to the CSR and behavioral finance literature by providing an understanding of how compensation and religiosity can direct managers’ investment decisions on CSR. Our results imply the importance of designing an appropriate compensation scheme in an organization in order to direct managers to make an optimal CSR decision. |
| first_indexed | 2024-12-20T09:22:09Z |
| format | Article |
| id | doaj.art-6947b69355774115868f1cb27abf7f91 |
| institution | Directory Open Access Journal |
| issn | 1410-8089 2443-2687 |
| language | English |
| last_indexed | 2024-12-20T09:22:09Z |
| publishDate | 2020-07-01 |
| publisher | Universitas Merdeka Malang |
| record_format | Article |
| series | Jurnal Keuangan dan Perbankan |
| spelling | doaj.art-6947b69355774115868f1cb27abf7f912022-12-21T19:45:16ZengUniversitas Merdeka MalangJurnal Keuangan dan Perbankan1410-80892443-26872020-07-0124326728110.26905/jkdp.v24i3.4063The effect of compensation and religiosity on managers’ CSR decisionPoppy Dian Indira Kusuma0 Wiwiek Rabiatul Adawiyah1Bambang Agus Pramuka2Zahrotush Sholikhah3Department of Accounting, Faculty of Economics and Business Universitas Jenderal Soedirman Jl. Prof. Dr. H.R. Boenyamin No.708, Purwokerto, 53122, IndonesiaDepartment of Management, Faculty of Economics and Business Universitas Jenderal Soedirman Jl. Prof. Dr. H.R. Boenyamin No.708, Purwokerto, 53122, IndonesiaDepartment of Accounting, Faculty of Economics and Business Universitas Jenderal Soedirman Jl. Prof. Dr. H.R. Boenyamin No.708, Purwokerto, 53122, IndonesiaDepartment of Management, Faculty of Economics, Universitas Negeri Yogyakarta Jl. Colombo No.1, Karang Malang, Yogyakarta, 55281, IndonesiaThis study aims to examine the relationship between compensation schemes and religiosity and managers’ investment decisions in CSR. We argue that compensation scheme and managers’ level of religiosity associate with managers’ choice whether to invest in value-increasing or value-decreasing CSR. Data were collected through a laboratory experiment which involved 100 participants. The Chi-square test results show that managers who work under a performance-based compensation tend to choose a value-increasing CSR. Meanwhile, managers who work under nonperformance-based compensation tend to choose a value-decreasing CSR. However, this study failed to prove the relationship between manager’s religiosity level and CSR investment decision made by managers. A small variance of our participants’ religiosity level may lead to this finding. This research contributes to the CSR and behavioral finance literature by providing an understanding of how compensation and religiosity can direct managers’ investment decisions on CSR. Our results imply the importance of designing an appropriate compensation scheme in an organization in order to direct managers to make an optimal CSR decision.http://jurnal.unmer.ac.id/index.php/jkdp/article/view/4063compensationcorporate social responsibilityinvestment decisionreligiosity |
| spellingShingle | Poppy Dian Indira Kusuma Wiwiek Rabiatul Adawiyah Bambang Agus Pramuka Zahrotush Sholikhah The effect of compensation and religiosity on managers’ CSR decision Jurnal Keuangan dan Perbankan compensation corporate social responsibility investment decision religiosity |
| title | The effect of compensation and religiosity on managers’ CSR decision |
| title_full | The effect of compensation and religiosity on managers’ CSR decision |
| title_fullStr | The effect of compensation and religiosity on managers’ CSR decision |
| title_full_unstemmed | The effect of compensation and religiosity on managers’ CSR decision |
| title_short | The effect of compensation and religiosity on managers’ CSR decision |
| title_sort | effect of compensation and religiosity on managers csr decision |
| topic | compensation corporate social responsibility investment decision religiosity |
| url | http://jurnal.unmer.ac.id/index.php/jkdp/article/view/4063 |
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