경영자와 종업원의 보상 차이는 ESG 성과에 영향을 미치는가? 중국기업을 이용한 조사

Due to the global environmental disaster, the green economy has been emphasized for several decades. From a corporate point of view, it is required to find ways for sustainable development. At the same time, a considerable number of studies are conducted to link environmental (E), social (S), and governance (G) factors with corporate continuity. In recent years, Chinese society's interest in corporate ESG performance has been increasing rapidly as in other countries. By reflecting this, current study examines ESG performance in relation to the corporate compensation system. Specifically, we investigate the impact of compensation differences between managers and employees on ESG performance. Using Chinese listed companies from 2012 to 2022, we show a significant and positive relationship between the manager-employee compensation gap and ESG performance. It is interpreted as the larger the compensation gap between managers and employees, the greater the ESG performance of a company, supporting the tournament theory. In addition, as a result of individual analysis of the three factors of E, S, and G, the compensation gap had a significant relationship with the S and G factors, but not with the E factor. These results are consistent in several robustness tests. This study has a contributing point in that it supplemented ESG-related research and thereby suggests managerial and policy implications.