Proceedings of the 2025 9th International Seminar on Education, Management and Social Sciences (ISEMSS 2025)

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Research On Executive Compensation Incentives and Corporate Performance: How Eco-Management Practices Drive Sustainability

Authors
Yuezhang Li1, Chenxi Jiang1, 2, *, Yiping Jiang2, Yuxuan Deng3
1School of Economics and Management, Xiangnan University, Chenzhou, China
2School of Mathematics and Information Science, Xiangnan University, Chenzhou, China
3School of Education and Law, Xiangnan University, Chenzhou, China
*Corresponding author. Email: jiangchenxi@xnu.edu.cn
Corresponding Author
Chenxi Jiang
Available Online 12 September 2025.
DOI
10.2991/978-2-38476-462-4_108How to use a DOI?
Keywords
SG performance; environmental management; executive compensation incentives; financial performance
Abstract

Large manufacturing companies in China have been leaders in adopting environmental management practices, working together across industries to improve sustainability. This study looks at how executive compensation incentives affect both financial performance and environmental, social, and governance (ESG) outcomes. We analyzed data from 145 large companies listed on the Shenzhen A-share market, covering the period from 2019 to 2023. We used statistical models to understand how environmental practices influence financial performance, measured by Return on Assets (ROA) and Return on Equity (ROE). Empirical results confirm that compensation incentives positively affect corporate financial performance. Mediation tests validate ESG performance as the transmission mechanism between incentives and financial outcomes. Moreover, the effect is stronger in state-owned companies compared to non-state-owned companies. These insights are important for policymakers and business leaders looking to align executive incentives with both financial performance and sustainability goals.

Copyright
© 2025 The Author(s)
Open Access
Open Access This chapter is licensed under the terms of the Creative Commons Attribution-NonCommercial 4.0 International License (http://creativecommons.org/licenses/by-nc/4.0/), which permits any noncommercial use, sharing, adaptation, distribution and reproduction in any medium or format, as long as you give appropriate credit to the original author(s) and the source, provide a link to the Creative Commons license and indicate if changes were made.

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Volume Title
Proceedings of the 2025 9th International Seminar on Education, Management and Social Sciences (ISEMSS 2025)
Series
Advances in Social Science, Education and Humanities Research
Publication Date
12 September 2025
ISBN
978-2-38476-462-4
ISSN
2352-5398
DOI
10.2991/978-2-38476-462-4_108How to use a DOI?
Copyright
© 2025 The Author(s)
Open Access
Open Access This chapter is licensed under the terms of the Creative Commons Attribution-NonCommercial 4.0 International License (http://creativecommons.org/licenses/by-nc/4.0/), which permits any noncommercial use, sharing, adaptation, distribution and reproduction in any medium or format, as long as you give appropriate credit to the original author(s) and the source, provide a link to the Creative Commons license and indicate if changes were made.

Cite this article

risenwbib
TY  - CONF
AU  - Yuezhang Li
AU  - Chenxi Jiang
AU  - Yiping Jiang
AU  - Yuxuan Deng
PY  - 2025
DA  - 2025/09/12
TI  - Research On Executive Compensation Incentives and Corporate Performance: How Eco-Management Practices Drive Sustainability
BT  - Proceedings of the 2025 9th International Seminar on Education, Management and Social Sciences (ISEMSS 2025)
PB  - Atlantis Press
SP  - 952
EP  - 962
SN  - 2352-5398
UR  - https://doi.org/10.2991/978-2-38476-462-4_108
DO  - 10.2991/978-2-38476-462-4_108
ID  - Li2025
ER  -