The assistant professor of marketing presented a paper on the relationship between CEO pay slice and a firm’s corporate social responsibility and firm value, and spoke on a panel about experiential learning in the classroom.
Prachi Gala, assistant professor of marketing in the Martha and Spencer Love School of Business, served as a presenter and a panelist at the 2018 Society for Marketing Advances conference held Oct. 31-Nov. 3 in Florida.
Gala presented the paper “CEO Pay Slice and Firm Value: Is Corporate Social Responsibility a Missing Link?,” which she co-wrote with Vishal Gupta, Sandra Mortal, Xiaohu Guo and Dan Bachrach, all with the University of Alabama.
The paper’s abstract reads: “This research examines the relationship between the CEO pay slice (fraction of the aggregate compensation of the firm’s top-five executive team captured by the CEO) and firm’s corporate social responsibility and firm value. The authors argue that the firms with high CEO pay slice are less likely to invest in external as well as internal corporate social responsibility. They are also likely to exhibit lower firm value. The impact of CEO pay slice on the firm value is mediated by the firm’s act of external and internal social responsibility. A longitudinal analysis of a total sample of 27,652 firm-year observations for the 1992-2013 period provide support for the authors’ hypotheses. This research shows the importance of carefully considering the compensation being paid to the TMT, as it proves to be the antecedent to the overall firm value, highlights the impact of compensation on the social responsibility performed by the firm.”
Gala also spoke on the panel “Incorporating Experiential Learning in the Classroom: Activities and Speakers.” The panel, which included faculty from the University of Rhode Island, Arkansas State University, Clemson University and California State University – Fresno, discussed different techniques to increase experiential learning, problems and solutions for working with guest speakers and practitioners, techniques for conducting case study exercises, and making students work on real-time projects.
Gala joined Elon’s faculty in August 2018 after earning her doctorate in business administration with a concentration in marketing from the University of Mississippi. Her primary research interests include the impact of corporate governance (compensation and composition) of upper echelons on marketing strategy. Prior to her academic career, Gala worked as a business technology analyst and as a marketing strategist.