Top-management compensation and environmental innovation strategy

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dc.citation.issue4
dc.citation.volume32
dc.contributor.authorPhung G
dc.contributor.authorTrinh HH
dc.contributor.authorNguyen TH
dc.contributor.authorTrinh VQ
dc.date.accessioned2024-07-29T21:07:39Z
dc.date.available2024-07-29T21:07:39Z
dc.date.issued2023-05-18
dc.description.abstractThe increasing awareness of global climate change puts more pressure on firms to reduce their environmental externalities. Managers long ignored this responsibility, which may erode business profits, going against their traditional goals. In this study, we examine the effect of top management's extrinsic incentives (i.e., reward-driven motivation) on corporate environmental innovation strategy (i.e., eco-innovation) using a large dataset of S&P1500 non-financial firms for 2000–2020. The results indicate that firms with greater levels of top-management compensation exhibit higher scores of eco-innovation engagement. The effect holds after we address the endogeneity problem through the quasi-natural experiment using the difference-in-differences analysis on the event of the Paris Agreement 2015. Our further investigations reveal that such a positive impact of managerial incentives on eco-innovation is less intensified in the more polluting industries but more pronounced in more innovative ones.
dc.description.confidentialfalse
dc.edition.editionMay 2023
dc.format.pagination1634-1649
dc.identifier.citationPhung G, Trinh HH, Nguyen TH, Trinh VQ. (2023). Top-management compensation and environmental innovation strategy. Business Strategy and the Environment. 32. 4. (pp. 1634-1649).
dc.identifier.doi10.1002/bse.3209
dc.identifier.eissn1099-0836
dc.identifier.elements-typejournal-article
dc.identifier.issn0964-4733
dc.identifier.urihttps://mro.massey.ac.nz/handle/10179/71139
dc.languageEnglish
dc.publisherERP Environment and John Wiley and Sons Ltd
dc.publisher.urihttps://onlinelibrary.wiley.com/doi/10.1002/bse.3209
dc.relation.isPartOfBusiness Strategy and the Environment
dc.rights(c) 2022 The Author/s
dc.rightsCC BY 4.0
dc.rights.urihttps://creativecommons.org/licenses/by/4.0/
dc.subjecteco-innovation
dc.subjectenvironmental policy
dc.subjecttop-management compensation
dc.titleTop-management compensation and environmental innovation strategy
dc.typeJournal article
pubs.elements-id454941
pubs.organisational-groupOther
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