Government grants and corporate environmental performance: the moderation effect of executive compensation incentives
摘要
In the context of mounting global scrutiny of environmental concerns, the environmental conduct of enterprises is not only a determinant of their own sustainable development but also exerts a significant influence on the collective well-being of society. This paper analyses the influence of government grants (GG) and executive compensation incentives (ECI) on corporate environmental performance (CEP), using a sample of A-share listed companies in Shenzhen and Shanghai from 2009 to 2022. The conclusions of the study show that: (1) GG have the potential to significantly enhance the level of CEP, and the government’s supervisory and governance mechanisms can positively influence corporate environmental governance. (2) ECI can increase GG’s promotion effect on the CEP level. (3) The improvement of the CEP is more strongly impacted by the strength of GG in highly polluted industries, and the government should priorities the environmental decision-making behavior of heavily polluted enterprises. Meanwhile, this paper provides crucial insights for policymakers. The primary innovation over earlier research of study is its methodical analysis of the relationships between GG, ECI, and CEP within the framework of sustainable development. It also uses a heavy polluting industry as an example, which is a good extension and innovation of earlier research and sets a new standard for future studies. This demonstrates the unique research value and necessity of this paper.