Equity Incentives and Corporate Green Innovation: Mechanisms and Institutional Contingencies
DOI:
https://doi.org/10.54097/25tyj171Keywords:
Equity Incentives, Green Innovation, State-Owned Enterprises, Principal-Agent Theory.Abstract
Against the backdrop of escalating global environmental degradation and resource scarcity, green innovation has emerged as a cornerstone of corporate sustainable development. Beyond reducing energy consumption and enhancing resource utilization efficiency, it strengthens competitive advantage and long-term profitability. Governments worldwide have implemented stringent environmental protection policies, with China's "dual carbon" goals accelerating industrial green transformation and compelling enterprises to assume greater environmental stewardship. By aligning senior executives' interests with corporate long-term value, equity incentives mitigate principal-agent conflicts, a mechanism particularly congruent with green innovation's inherent characteristics of high investment intensity, long gestation periods, and strong positive externalities. Based on empirical analysis of Chinese A-share listed companies from 2010 to 2023, this study demonstrates that equity incentives significantly enhance enterprises' green innovation capabilities, with pronounced effects on energy efficiency improvement and waste emission reduction. The findings offer empirical insights for corporate decision-makers and policymakers.
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