Study On The Influence Of Executive Incentives On Corporate Environmental Performance

At present,the construction of ecological civilization in China is in a critical period of pressure superposition and load-bearing forward.The constraints of resources and environment are increasingly strengthened,and the pressure of ecological environment is increasing.Enterprises are the main body of market economy,the destroyer of ecological environment and the promoter of environmental protection.Corporate environmental performance is not only an important indicator that can reflect the effect of enterprise environmental protection,but also a reliable basis to judge whether enterprises undertake environmental protection obligations.In the new stage of China's economic development from high-speed growth to high-quality development,enterprises should keep up with the pulse of national development,maintain the sense of anxiety and initiative in environmental management,actively undertake corporate social responsibility,and explore the sustainable development path to improve the environmental performance of enterprises.And executives are responsible for the operation and management of enterprises.The environmental performance of enterprises is closely related to the decision-making of executives.The perfect incentive system of senior managers can reduce the self-interest behavior of senior managers to the greatest extent,and encourage the senior managers to make the strategic decision of environmental management,so as to improve the corporate environmental performance.Based on relevant theories,this paper takes A-share heavily polluted listed companies in Shanghai and Shenzhen as the research object,selects the data samples of enterprises from 2011 to 2018,analyzes the impact mechanism of executive incentive on enterprise environmental performance from the perspective of executive incentive,focusing on the two aspects of executive explicit incentive and executive implicit incentive This paper analyzes the impact of different incentive methods on corporate environmental performance,clarifies the interaction between different incentive methods,analyzes the impact of the nature of property rights on the relationship between compensation incentive and corporate environmental performance,and on this basis,analyzes how to guide executives to maximize corporate environmental performance through effective incentive methods.The specific research contents are as follows:(1)A theoretical analysis of the impact of executive incentive on corporate environmental performance.This paper analyzes the influence mechanism of compensation incentive,equity incentive,control incentive and promotion incentive on enterprise environmental performance,discusses the interaction of different incentive modes and the influence of property rights on the relationship between compensation incentive and enterprise environmental performance,and puts forward research hypotheses.(2)The impact of executive incentive on corporate environmental performance,and the interaction effect of different executive incentive methods and the measurement of the impact of property rights on the relationship between compensation incentive and corporate environmental performance.On the basis of the existing literature research,we should select the measurement method of key variables reasonably,collect and sort out the relevant data,build regression model,test the research hypothesis,and verify the robustness of the test results.(3)This paper summarizes the research conclusions,explores the main ways to improve the environmental performance through the incentives of senior managers,and puts forward reasonable management decisions and policy-making suggestionns.The main conclusions of this paper are as follows:(1)There is a significant inverted U-shaped relationship between executive compensation incentive and corporate environmental performance,that is,executive compensation incentive has significant dual effects: interest convergence effect and entrenchment effect.(2)Executive equity incentive may have a positive impact on corporate environmental performance.(3)There is a significant positive correlation between executive control incentive(in-service consumption incentive)and corporate environmental performance.(4)There is a significant negative effect on the environmental performance of the enterprise,which is measured by the internal salary gap of the executives.(5)In the process of improving corporate environmental performance,there is a substitution effect between executive equity incentive and executive control incentive,but there is no significant complementary effect between executive compensation incentive and executive equity incentive.(6)When the executive compensation incentive level is low,the nationalization nature of enterprises will significantly strengthen the positive impact of executive compensation incentive on enterprise environmental performance;when the executive compensation level is high,the nationalization nature of enterprises will significantly weaken the negative impact of executive compensation incentive on enterprise environmental performance.According to the above research conclusions,the paper finally puts forward suggestions for enterprise management decision-making and government policy-making in the following four aspects:(1)Optimize the design of executive incentive contract.(2)Improve the system of checks and balances in corporate governance.(3)Deepen the reform of the governance mechanism of state-owned enterprises.(4)Improve the enterprise environmental performance management system.This paper attempts to make innovations in the following three aspects:(1)The existing research is mainly from the perspective of external environment or corporate governance.But this paper attempts to study the impact on corporate environmental performance from the micro level factors of executive incentive.(2)Combined with the internal characteristics of implicit incentive,this paper studies the impact of implicit incentive and incentive combination on enterprise environmental performance.(3)Most of the existing researchs are based on the subjective evaluation score.According to the WBCSD ecological benefit evaluation standard,this paper uses objective financial indicators and environmental indicators to measure corporate environmental performance.