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Do tournament incentives matter for ceos to be environmentally responsible? Evidence from chinese listed companies

  • Sajid Ullah
  • , Farman Ullah Khan*
  • , Laura Mariana Cismaș*
  • , Muhammad Usman*
  • , Andra Miculescu
  • *Corresponding author for this work

Research output: Contribution to journalArticlepeer-review

24 Scopus citations

Abstract

Relying on tournament theory and environmental management research, we examine how CEO tournament incentives induce top executives to invest more in green innovation. Using a sample of Chinese listed companies from 2010 to 2016, we find evidence that CEO tournament incentives are positively associated with green innovation. In addition, we find that a positive relationship between CEO tournament incentives and green innovation is stronger in state-owned enterprises than in non-state-owned enterprises. These results support tournament theory, which pro-poses that better incentives induce top executives’ efforts to win the tournament incentives, and such efforts are subject to fiercer competition among employees, which improves firms’ social and financial performance. Moreover, our findings have implications for policy makers and regulators who wish to enhance environmental legitimacy by providing tournament incentives to top execu-tives.

Original languageEnglish
Article number470
JournalInternational Journal of Environmental Research and Public Health
Volume19
Issue number1
DOIs
StatePublished - 1 Jan 2022
Externally publishedYes

Bibliographical note

Publisher Copyright:
© 2022 by the authors. Li-censee MDPI, Basel, Switzerland.

Keywords

  • CEO tournament incentive
  • China
  • Green innovation
  • State-owned enter-prises
  • Tournament theory

ASJC Scopus subject areas

  • Pollution
  • Public Health, Environmental and Occupational Health
  • Health, Toxicology and Mutagenesis

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