Employee equity incentive and Enterprises’ ESG performance: An empirical study of Chinese A-share listed companies
DOI:
https://doi.org/10.54097/hbem.v18i.12282Keywords:
employee equity incentive, enterprise ESG performance, sustainable development.Abstract
There are some externalities in enterprise ESG practice, which will lead to insufficient investment in enterprise ESG. Internalizing the externalities of ESG is crucial to enhancing the practice ability of ESG and stimulating the internal motivation of enterprises. Based on the panel data of Shanghai and Shenzhen A-share listed companies from 2008 to 2020, this paper conducts an empirical analysis on the impact and mechanism of employee equity incentive on ESG performance of enterprises. The findings are as follows: (1) Employee equity incentive can significantly promote the ESG performance of enterprises and it is highly stable under the control of various dimensions. (2)The implementation of employee equity incentive in non-state-owned enterprises and enterprises with large market power has a stronger effect on promoting the ESG performance of enterprises; (3) Mechanism analysis shows that employee equity incentive can promote the ESG performance of enterprises by increasing the share of labor income and promoting the improvement of enterprise production efficiency. From the perspective of employee equity incentive, this paper provides theoretical support for improving the ESG performance of Chinese enterprises and promoting the ESG development path, which has both theoretical and practical significance.
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