Corporate provision of incentives for the attainment of environmental targets

Details

Serval ID
serval:BIB_22CA59123103
Type
Inproceedings: an article in a conference proceedings.
Collection
Publications
Institution
Title
Corporate provision of incentives for the attainment of environmental targets
Title of the conference
Academy of Management (AoM) Proceedings
Author(s)
Derchi G., Oyon D.
Address
Vancouver, Canada
Publication state
Published
Issued date
2015
Peer-reviewed
Oui
Language
english
Abstract
This paper examines the determinants influencing corporate choice to provide managers and employees with incentives for the attainment of green targets. We analyze a cross-industry panel of 838 global listed firms from the 2007-2013 Carbon Disclosure Project (CDP) investor survey. According to agency theory and social legitimacy, we find that the probability of adopting green incentives increases with higher investment in monitoring environmental performance and higher peer pressures. Also, non US firms are more likely to respond to environmental concern by means of green-related individual rewards. Consistent with rational and social accounts explaining management practice diffusion, innovation propensity is associated with earlier use of green incentives, while exogenous noise and industry-peer pressure impact later adoption. However, country peers influence earlier provision. Finally, companies investing more in green monitoring are likely to be later adopters, suggesting the need to cumulate knowledge about the informativeness of environmental performance measures before inserting them in compensations contracts.
Keywords
Environmental management accounting, Green management, Incentive systems
Create date
08/09/2016 14:49
Last modification date
21/08/2019 5:12
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