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Executive compensation contract effectiveness and firms' green technology innovation structure

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  • Deng, Fukang
  • Chen, Xiaofang

Abstract

As a crucial component of corporate governance, exploring the impacts of the executive compensation contract on green innovation structure is conducive to promoting green transition. Based on a sample of Chinese listed companies from 2012 to 2022, this study reveals a significant enhancement of the executive compensation contract in corporate green innovation structure. The finding points out that the executive compensation contract can stimulate corporate green innovation activities, promoting substantive green innovation. This impact operates mainly through mitigating managers` myopia, and enhancing corporate management levels.

Suggested Citation

  • Deng, Fukang & Chen, Xiaofang, 2024. "Executive compensation contract effectiveness and firms' green technology innovation structure," Finance Research Letters, Elsevier, vol. 67(PA).
    • Handle: RePEc:eee:finlet:v:67:y:2024:i:pa:s1544612324007967
    DOI: 10.1016/j.frl.2024.105766
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    References listed on IDEAS

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    1. Liu, Xiangwei & Li, Yubinyang & Lau, Yengwai & Yaacob, Zulnaidi, 2025. "The impact of executive compensation stickiness on enterprises’ green innovation efficiency—— A threshold effect based on audit quality," Finance Research Letters, Elsevier, vol. 86(PE).

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