Executive Compensation Incentives And Corporate Green Innovation

At present,the shortage of resources and environmental pollution caused by rapid economic development are becoming more and more serious.The simple and extensive economic development model is no longer in line with China’s national conditions.Under the new situation,China’s economy urgently needs to shift from traditional factor-driven to green innovation-driven.Therefore,scientific Efficiently improving the green innovation capability of enterprises has become a key step in my country’s economic transformation process.Manufacturing is the industry with the largest number of micro-subjects in my country’s economic activities.In order to create a green economic environment that is energy-saving,environmentally friendly,and sustainable,we must first conduct research from the perspective of the factors that affect the green innovation capabilities of manufacturing enterprises.The influence is generally divided into external factors and internal factors.Existing research shows that the external factors that affect the green innovation of enterprises mainly include environmental regulations,government subsidies,technical barriers,industry competition and external capital intervention,while internal factors are mostly related to corporate governance,The nature of property rights and the characteristics of executives.However,as the scandals of some companies evading environmental regulations and exploiting policy loopholes to defraud financial subsidies have been exposed one after another,the limitations of external driving factors have gradually emerged,and academic circles have begun to turn their research perspectives to the inside of companies.Executives are the managers of enterprises.Almost all major investment projects of enterprises require the participation and decision-making of executives.The personal behavior of executives directly affects whether green innovation projects can be successfully implemented and whether they can ultimately achieve results.The agency problem arising from the separation of powers has always been a problem that corporate enterprises cannot avoid.The high risks brought about by enterprises investing in green innovation projects may cause executives to act against the interests of shareholders in order to safeguard their personal interests.As one of the important means to reduce the agency cost of enterprises,it can reduce the possibility of adverse selection of executives to a certain extent,and then have an impact on the level of green innovation of enterprises.Therefore,this paper chooses to study the effect of executive compensation incentives on the The impact of corporate green innovation.Executives are not only the decision-makers of various investment behaviors of the enterprise,but also the makers of various systems of the enterprise.Whether the internal management system of the enterprise is perfect or not directly affects the quality of the internal control of the enterprise,and the quality of the internal control will also directly affect the functional units of the enterprise.Therefore,internal control is also one of the factors affecting the green innovation of enterprises.This paper not only studies the direct impact of executive compensation incentives on corporate green innovation,but also studies the mediating role of internal control in the process of executive compensation incentives affecting corporate green innovation.In addition,based on high-order theory,this paper also believes that the personal characteristics of executives will affect the value orientation and risk preference of executives,and then affect the implementation of incentive policies to a certain extent.Therefore,this paper also uses executive characteristics as moderator variables to study the influence of executive characteristics on the relationship between executive compensation incentives and corporate green innovation from three dimensions:executive age,executive education,and executive tenure.This paper selects my country’s A-share manufacturing listed companies as the research object,and takes 2013-2019 as the research interval.Through appropriate screening and processing,a total of 1847 listed companies are obtained for research samples,and 8523 observable data are obtained.The research results show that:executive compensation incentives can significantly improve the green innovation ability of enterprises;executive compensation incentives can significantly improve the internal control level of enterprises;internal control plays an intermediary role in the process of executive compensation incentives to improve the green innovation ability of enterprises;and age Compared with older executives,the implementation of salary incentives for younger executives can better promote the green innovation capability of enterprises;The green innovation ability of enterprises is improved;compared with the executives with shorter tenures,the implementation of compensation incentives for senior executives with a longer tenure can promote the improvement of green innovation capabilities of enterprises;when conducting extended research,this paper also uses executive equity incentives as a Another way of executive incentives to study its relationship with corporate green innovation,this paper finds that executive equity incentives can also significantly promote corporate green innovation capabilities,and internal control plays an important role in executive equity incentives and corporate green innovation.It also played a mediating role in the relationship.