Research On Executive Incentives And Corporate Responsibility Of Environmental Governance ——Mediating Effect Based On The Effectiveness Of Internal Control

A high-quality natural environment can not only improve the quality of life of the people,but also ensure the sustainable development of society.However,environmental pollution incidents are not uncommon for a long time,which not only have a serious impact on the daily production and operation efficiency of enterprises,but also constantly attack and challenge the confidence of domestic and foreign investors in the sustainable development of our country’s economy.The executive incentive mechanism can curb the short-sighted behavior of executives at the root,thus prompting enterprises to actively fulfill their environmental governance responsibilities.However,few scholars in the academic circle have paid attention to the possible mediating effect of internal control effectiveness between the two.Therefore,this paper attempts to explore the relationship and role path of executive incentives,the effectiveness of internal control and corporate environmental governance responsibility.Firstly,this paper discusses the practical significance and important value of the topic selection from three aspects: executive compensation incentives and equity incentives,internal control effectiveness and corporate environmental governance responsibility.Then,based on the scholars’ previous related researches,this paper starts with the two-way relationship between the three,and summarizes and summarizes them respectively,and finds the main controversial points of the scholars and the possible imperfections in the related research.The brief summary of the theory constitutes the theoretical research basis of the article.Secondly,by analyzing the possible logical relationship between the two,relevant hypotheses are put forward.Subsequently,this paper conducts an empirical analysis using the listed companies in China’s A-share industrial sector in the past ten years as a research sample to test the reliability of the hypothesis.Finally,on this basis,combined with the research conclusions of this paper,some superficial suggestions are put forward.The empirical results show that:（1）Improving executive incentives can improve corporate environmental responsibility performance levels;（2）Improve executive compensation incentives or equity incentives can improve the operating effect of corporate internal control;（3）Strengthening executive incentives can enhance executives’ attention to corporate environmental responsibility.At the same time,the effectiveness of enterprise internal control plays a partial intermediary role.Practice has proved that effective internal control can greatly reduce the possibility of executives taking shortsighted behavior in environmental protection,thereby ensuring the performance of corporate environmental responsibilities.Based on the research conclusions,this paper puts forward some superficial suggestions from the enterprise level,expecting more enterprises to improve the executive compensation incentive policy and implement the equity incentive plan,strengthen the construction of internal control and so on.