The impact of the top management team faultlines on environment, social and governance performance of listed companies
At present, the research focus on Environment, Social and Governance (ESG) is mainly on the economic consequences of ESG performance, and research on the influencing factors of ESG overall performance is lacking. The top management team plays a decisive role in the decision of ESG investment. To im...
| Main Authors: | , , , , |
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| Format: | Article |
| Language: | English |
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Vilnius Gediminas Technical University
2023-12-01
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| Series: | Technological and Economic Development of Economy |
| Subjects: | |
| Online Access: | https://mma.vgtu.lt/index.php/TEDE/article/view/19547 |
| _version_ | 1827573195226480640 |
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| author | Xiaofang Chen Xin Chen Ming Fang Wenlei Xia Yu Hu |
| author_facet | Xiaofang Chen Xin Chen Ming Fang Wenlei Xia Yu Hu |
| author_sort | Xiaofang Chen |
| collection | DOAJ |
| description |
At present, the research focus on Environment, Social and Governance (ESG) is mainly on the economic consequences of ESG performance, and research on the influencing factors of ESG overall performance is lacking. The top management team plays a decisive role in the decision of ESG investment. To improve ESG performance and promote sustainable development of enterprises. This research explores the influence of different types of top management team faultlines on the ESG performance by using the panel fixed effects model from 2015 to 2019 for the samples of 347 listed enterprises in China, and tests the moderating effect of management incentives. Results show that the relationship-type top management team faultlines is positively correlated with the ESG performance, whereas the task-type faultlines is negatively correlated with the ESG performance. Management compensation incentive will weaken the positive effect of the relationship-type faultlines on the ESG performance, and the moderating effect of the task-type faultlines on the ESG performance is insignificant. Management equity incentive will strengthen the positive effect of the relationship-type faultlines on the ESG performance and weaken the negative effect of the task-type faultlines. Our findings provide a new perspective for how to improve the ESG performance of listed companies by the optimization of corporate governance structure.
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| first_indexed | 2024-03-08T20:14:49Z |
| format | Article |
| id | doaj.art-324947d802314ea3a43cf62892719510 |
| institution | Directory Open Access Journal |
| issn | 2029-4913 2029-4921 |
| language | English |
| last_indexed | 2024-03-08T20:14:49Z |
| publishDate | 2023-12-01 |
| publisher | Vilnius Gediminas Technical University |
| record_format | Article |
| series | Technological and Economic Development of Economy |
| spelling | doaj.art-324947d802314ea3a43cf628927195102023-12-22T16:22:50ZengVilnius Gediminas Technical UniversityTechnological and Economic Development of Economy2029-49132029-49212023-12-0129610.3846/tede.2023.19547The impact of the top management team faultlines on environment, social and governance performance of listed companiesXiaofang Chen0Xin Chen1Ming Fang2Wenlei Xia3Yu Hu4School of Management, Wuhan University of Technology, Wuhan, 430070, China; Research Institute of Digital Governance and Management Decision Innovation, Wuhan University of Technology, Wuhan, 430070, ChinaSchool of Management, Wuhan University of Technology, Wuhan, 430070, ChinaSchool of Management, Wuhan University of Technology, Wuhan, 430070, ChinaSchool of Management, Wuhan University of Technology, Wuhan, 430070, ChinaSchool of Management, Wuhan University of Technology, Wuhan, 430070, China At present, the research focus on Environment, Social and Governance (ESG) is mainly on the economic consequences of ESG performance, and research on the influencing factors of ESG overall performance is lacking. The top management team plays a decisive role in the decision of ESG investment. To improve ESG performance and promote sustainable development of enterprises. This research explores the influence of different types of top management team faultlines on the ESG performance by using the panel fixed effects model from 2015 to 2019 for the samples of 347 listed enterprises in China, and tests the moderating effect of management incentives. Results show that the relationship-type top management team faultlines is positively correlated with the ESG performance, whereas the task-type faultlines is negatively correlated with the ESG performance. Management compensation incentive will weaken the positive effect of the relationship-type faultlines on the ESG performance, and the moderating effect of the task-type faultlines on the ESG performance is insignificant. Management equity incentive will strengthen the positive effect of the relationship-type faultlines on the ESG performance and weaken the negative effect of the task-type faultlines. Our findings provide a new perspective for how to improve the ESG performance of listed companies by the optimization of corporate governance structure. https://mma.vgtu.lt/index.php/TEDE/article/view/19547top management teamfaultlinesESG performancemanagement incentive |
| spellingShingle | Xiaofang Chen Xin Chen Ming Fang Wenlei Xia Yu Hu The impact of the top management team faultlines on environment, social and governance performance of listed companies Technological and Economic Development of Economy top management team faultlines ESG performance management incentive |
| title | The impact of the top management team faultlines on environment, social and governance performance of listed companies |
| title_full | The impact of the top management team faultlines on environment, social and governance performance of listed companies |
| title_fullStr | The impact of the top management team faultlines on environment, social and governance performance of listed companies |
| title_full_unstemmed | The impact of the top management team faultlines on environment, social and governance performance of listed companies |
| title_short | The impact of the top management team faultlines on environment, social and governance performance of listed companies |
| title_sort | impact of the top management team faultlines on environment social and governance performance of listed companies |
| topic | top management team faultlines ESG performance management incentive |
| url | https://mma.vgtu.lt/index.php/TEDE/article/view/19547 |
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