ESG is a significant standard for the green transformation of corporations in the new era, and it is also an important helper for guiding green investment. Taking the data of A-share listed companies from 2010 to 2019 as a sample, the study explores the impact and mechanism of executive equity incentives on corporate ESG performance. It is observed that executive equity incentives play a significant role in promoting corporate ESG performance. Through the test of the mechanism of action, it is found that executive equity incentives improve corporate ESG performance by improving corporate innovation efficiency and alleviating financing constraints. In the heterogeneity analysis, it is found that corporate ESG enhancement is more significant in the samples of firms that are not heavy polluters, non-state-owned firms, and executives with green backgrounds. The findings provide richer suggestions for internal and external enterprises to achieve green and sustainable development of corporate economy.

Zijun Song. A Study of the Impact of Executives' Equity Incentives on Corporate ESG Performance. Academic Journal of Business & Management (2024) Vol. 6, Issue 5: 121-129. https://doi.org/10.25236/AJBM.2024.060517.

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