THE IMPACT OF CORPORATE SOCIAL RESPONSIBILITY ON INVESTMENT RECOMMENDATIONS: ANALYSTS’ PERCEPTIONS AND SHIFTING INSTITUTIONAL LOGICS

Abstract

Examining how compensation structure affects mobility and entrepreneurship decisions of employees, particularly those at the extreme ends of the performance distribution, we find that employees with high performance are less likely to leave firms with highly dispersed compensation. However, if these “high performers” do leave these employers, they are more likely to create or join new firms. Employees with lower performance are more likely to leave firms with high pay dispersion, but less likely to move to new ventures. Additionally, we show that mobility and entrepreneurship result in employees’ receiving higher compensation, regardless of their performance level.