• ISSN: 2301-3567 (Print), 2972-3981 (Online)
    • Abbreviated Title: J. Econ. Bus. Manag.
    • Frequency: Quarterly
    • DOI: 10.18178/JOEBM
    • Editor-in-Chief: Prof. Eunjin Hwang
    • Executive Editor: Ms. Fiona Chu
    • Abstracting/ Indexing:  CNKI, Google Scholar, Electronic Journals Library, Crossref, Ulrich's Periodicals Directory, MESLibrary, etc.
    • E-mail: joebm.editor@gmail.com
JOEBM 2024 Vol.12(1): 27-33
DOI: 10.18178/joebm.2024.12.1.771

The Impact of Executive Compensation Incentive and Internal Control on ESG Performance of Listed Companies

Zheng Min
Southwest University of Science and Technology, Mianyang, Sichuan, China
Email: 1696107828@qq.com (Z.M.)

Manuscript received September 28, 2023; revised November 6, 2023; accepted December 24, 2023; published February 2, 2024.

Abstract—In this paper, executive compensation incentive and Wind ESG score data of China’s A-share listed companies from 2018 to 2022 are used to study the impact of executive compensation incentive and internal control on ESG performance of listed companies. The findings are as follows: executive compensation incentive has a positive promoting effect on ESG performance of enterprises, and internal control plays a part of intermediary role in executive compensation incentive and ESG performance. The results of heterogeneity test show that executive compensation incentive plays a stronger positive role in heavily polluting enterprises, non-state-owned enterprises. On the one hand, this study provides empirical evidence for effectively improving ESG performance from the perspective of executive compensation, and enriching the relevant literature on factors affecting ESG performance. On the other hand, this study expands the function of executive compensation in corporate ESG performance, and verifies the necessity and rationality of Chinese listed companies to continuously improve executive compensation incentive policies from an empirical point of view.

Keywords—executive compensation incentive, Internal control, ESG performance

Cite: Zheng Min, "The Impact of Executive Compensation Incentive and Internal Control on ESG Performance of Listed Companies," Journal of Economics, Business and Management, vol. 12, no. 1, pp. 27-33, 2024.

Copyright © 2024 by the authors. This is an open access article distributed under the Creative Commons Attribution License which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited (CC BY 4.0).

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