741
Views
27
CrossRef citations to date
0
Altmetric
Original Articles

Are Top Executives Rewarded for Environmental Performance? The Role of the Board of Directors in the Context of China

, , &
Pages 1542-1565 | Received 27 May 2014, Published online: 23 Dec 2014

REFERENCES

  • Aerts W and Cormier D. 2009. Media legitimacy and corporate environmental communication. Account Org Soc 34(1):1–27
  • Baliga B, Moyer RC, and Rao RS. 1996. CEO duality and firm performance: What's the fuss? Strategic Manage J 17(1):41–53
  • Bansal P. 2005. Evolving sustainably: A longitudinal study of corporate sustainable development. Strategic Manage J 26(3):197–218
  • Berrone P. 2009. Environmental performance and executive compensation: An integrated agency-institutional perspective. Acad Manage J 52(1):103–26
  • Blackman A. 2010. Alternative pollution control policies in developing countries. Rev Environ Econ Policy 4(2):234–53
  • Boyd BK. 1994. Board control and CEO compensation. Strategic Manage J 15(5):335–44
  • Brown N and Deegan C. 1998. The public disclosure of environmental performance information—A dual test of media agenda setting theory and legitimacy theory. Account Bus Res 291):21–41
  • Capezio A, Shields J, and O’Donnell M. 2011. Too good to be true: Board structural independence as a moderator of CEO pay-for-firm-performance. J Manage Stud 483):487–513
  • Caranikas-Walker F, Goel S, Gómez-Mejía LR, et al. 2008. An empirical investigation of the role of subjective performance assessments versus objective performance indicators as determinants of CEO compensation. Manage Res 6(1):7–25
  • Castaneda MA, Garen J, and Thornton J. 2008. Competition, contractibility, and the market for donors to nonprofits. J Law Econ Organ 241):215–46
  • Certo ST. 2003. Influencing initial public offering investors with prestige: Signaling with board structures. Acad Manage Rev 28(3):432–46
  • Chhaochharia V and Grinstein Y. 2009. CEO compensation and board structure. J Financ 641):231–61
  • Child J and Tsai T. 2005. The dynamic between firms’ environmental strategies and institutional constraints in emerging economies: Evidence from China and Taiwan. J Manage Stud 421):95–125
  • Choi Y, Zhang N, Chen SC, et al. 2013. Quantitative ecological risk analysis by evaluating China's eco-efficiency and its determinants. Hum Ecol Risk Assess 19(5):1324–37
  • Clarkson PM, Li Y, Richardson GD, et al. 2008. Revisiting the relation between environmental performance and environmental disclosure: An empirical analysis. Account Org Soc 33(4):303–27
  • Coles JL, Daniel ND, and Naveen L. 2008. Boards: Does one size fit all? J Financ Econ 872):329–56
  • Conyon MJ and He L. 2011. Executive compensation and corporate governance in China. J Corp Financ 174):1158–75
  • Coombs JE and Gilley KM. 2005. Stakeholder management as a predictor of CEO compensation: Main effects and interactions with financial performance. Strategic Manage J 269):827–40
  • Cordeiro JJ and Sarkis J. 2008. Does explicit contracting effectively link CEO compensation to environmental performance? Bus Strateg Environ 175):304–17
  • Cormier D and Magnan M. 2013. The economic relevance of environmental disclosure and its impact on corporate legitimacy: An empirical investigation. Bus Strateg Environ doi:10.1002/bse.1829
  • Cyert RM, Kang SH, and Kumar P. 2002. Corporate governance, takeovers, and top-management compensation: Theory and evidence. Manage Sci 48(4):453–69
  • Darnall N, Henriques I, and Sadorsky P. 2010. Adopting proactive environmental strategy: The influence of stakeholders and firm size. J Manage Stud 476):1072–94
  • de Villiers C, Naiker V, and van Staden CJ. 2011. The effect of board characteristics on firm environmental performance. J Manage 376):1636–63
  • Dean JM, Lovely ME, and Wang H. 2009. Are foreign investors attracted to weak environmental regulations? Evaluating the evidence from China. J Dev Econ 901):1–13
  • Delmas M and Toffel MW. 2004. Stakeholders and environmental management practices: An institutional framework. Bus Strateg Environ 134):209–22
  • Delmas MA. 2002. The diffusion of environmental management standards in Europe and in the United States: An institutional perspective. Policy Sci 35(1):91–119
  • Deutsch Y. 2005. The impact of board composition on firms’ critical decisions: A meta-analytic review. J Manage 31(3):424–44
  • Dögl C and Behnam M. 2014. Environmentally sustainable development through stakeholder engagement in developed and emerging countries. Bus Strateg Environ doi:10.1002/bse.1839
  • Earnhart D and Lizal L. 2006. Effects of ownership and financial performance on corporate environmental performance. J Comp Econ 341):111–29
  • Fahlenbrach R and Stulz RM. 2009. Managerial ownership dynamics and firm value. J Financ Econ 923):342–61
  • Fernández-Kranz D and Santaló J. 2010. When necessity becomes a virtue: The effect of product market competition on corporate social responsibility. J Econ Manage Strat 19(2):453–87
  • Firth M, Fung PM, and Rui OM. 2006. Corporate performance and CEO compensation in China. J Corp Financ 124):693–714
  • Frye MB. 2004. Equity-based compensation for employees: Firm performance and determinants. J Financ Res 27(1):31–54
  • Ghazali NAM. 2007. Ownership structure and corporate social responsibility disclosure: Some Malaysian evidence. Corp Gov 7(3):251–66
  • Hölmstrom B. 1979. Moral hazard and observability. Bell J Econ 10(1):74–91
  • Hafsi T and Turgut G. 2013. Boardroom diversity and its effect on social performance: Conceptualization and empirical evidence. J Bus Ethics 1123):463–79
  • Hart SL and Ahuja G. 1996. Does it pay to be green? An empirical examination of the relationship between emission reduction and firm performance. Bus Strateg Environ 51):30–7
  • He J. 2006. Pollution haven hypothesis and environmental impacts of foreign direct investment: The case of industrial emission of sulfur dioxide in Chinese provinces. Ecol Econ 60(1):228–45
  • Hillman AJ and Dalziel T. 2003. Boards of directors and firm performance: Integrating agency and resource dependence perspectives. Acad Manage Rev 283):383–96
  • Jacobs BW, Singhal VR, and Subramanian R. 2010. An empirical investigation of environmental performance and the market value of the firm. J Oper Manag 285):430–41
  • John TA and John K. 1993. Top-management compensation and capital structure. J Financ 483):949–74
  • Johnson RA and Greening DW. 1999. The effects of corporate governance and institutional ownership types on corporate social performance. Acad Manage J 425):564–76
  • Jones K and Rubin PH. 2001. Effects of harmful environmental events on reputations of firms. Adv Financ Econ 61):161–82
  • Karpoff JM, Lott Jr JR, and Wehrly EW. 2005. The reputational penalties for environmental violations: Empirical evidence. J Law Econ 482):653–75
  • Kassinis G and Vafeas N. 2002. Corporate boards and outside stakeholders as determinants of environmental litigation. Strategic Manage J 235):399–415
  • King AA and Lenox MJ. 2000. Industry self-regulation without sanctions: The chemical industry's responsible care program. Acad Manage J 434):698–716
  • Klassen RD and McLaughlin CP. 1996. The impact of environmental management on firm performance. Manage Sci 428):1199–214
  • Kock CJ, Santaló J, and Diestre L. 2012. Corporate governance and the environment: What type of governance creates greener companies? J Manage Stud 493):492–514
  • Kren L and Kerr JL. 1997. The effects of outside directors and board shareholdings on the relation between chief executive compensation and firm performance. Account Bus Res 27(4):297–309
  • Lam TY and Lee SK. 2008. CEO duality and firm performance: Evidence from Hong Kong. Corp Gov 83):299–316
  • Larraza-Kintana M, Wiseman RM, Gomez-Mejia LR, et al. 2007. Disentangling compensation and employment risks using the behavioral agency model. Strategic Manage J 28(10):1001–19
  • Li D, Moshirian F, Nguyen P, et al. 2007. Corporate governance or globalization: What determines CEO compensation in China? Res Int Bus Financ 21(1):32–49
  • Li W and Zhang R. 2010. Corporate social responsibility, ownership structure, and political interference: Evidence from China. J Bus Ethics 964):631–45
  • Liu X, Lu J, and Chizema A. 2013. Top executive compensation, regional institutions and Chinese OFDI. J World Bus 49:143–55
  • Lyon T, Lu Y, Shi X, et al. 2013. How do investors respond to Green Company Awards in China? Ecol Econ 94:1–8
  • McKendall M, Sánchez C, and Sicilian P. 1999. Corporate governance and corporate illegality: The effects of board structure on environmental violations. Int J Organ Anal 73):201–23
  • McWilliams A, Siegel DS, and Wright PM. 2006. Corporate social responsibility: Strategic implications. J Manage Stud 431):1–18
  • Melo T and Garrido-Morgado A. 2012. Corporate reputation: A combination of social responsibility and industry. Corp Soc Resp Environ Manage 19(1):11–31
  • Meng XH, Zeng SX, Leung AW, et al. 2014. Relationship between top executives’ characteristics and corporate environmental responsibility: Evidence from China. Hum Ecol Risk Assess doi:10.1080/10807039.2014.926201
  • Meng XH, Zeng SX, and Tam CM. 2012. From voluntarism to regulation: A study on ownership, economic performance and corporate environmental information disclosure in China. J Bus Ethics 116(1):217–32
  • Meng XH, Zeng SX, Tam CM, et al. 2013. Whether top executives’turnover influences environmental responsibility: From the perspective of environmental information disclosure. J Bus Ethics 114(2):341–53
  • Murphy KJ. 2002. Explaining executive compensation: Managerial power versus the perceived cost of stock options. Univ Chicago Law Rev 69(3):847–69
  • Neville BA, Bell SJ, and Mengüç B. 2005. Corporate reputation, stakeholders and the social performance-financial performance relationship. Eur J Marketing 399/10):1184–98
  • Oh WY, Chang YK, and Martynov A. 2011. The effect of ownership structure on corporate social responsibility: Empirical evidence from Korea. J Bus Ethics 104(2):283–97
  • Paul DL. 2007. Board composition and corrective action: Evidence from corporate responses to bad acquisition bids. J Financ Quant Anal 42(03):759–83
  • Puncheva P. 2008. The role of corporate reputation in the stakeholder decision-making process. Bus Soc 47(3):272–90
  • Qi GY, Zeng SX, Li XD, et al. 2012. Role of internalization process in defining the relationship between ISO 14001 certification and corporate environmental performance. Corp Soc Resp Environ Manage 19(3):129–40
  • Qi GY, Zeng SX, Tam CM, et al. 2013. Stakeholders’ influences on corporate green innovation strategy: A case study of manufacturing firms in China. Corp Soc Resp Environ Manage 20(1):1–14
  • Rosenstein S and Wyatt JG. 1990. Outside directors, board independence, and shareholder wealth. J Financ Econ 26(2):175–91
  • Roxas B and Coetzer A. 2012. Institutional environment, managerial attitudes and environmental sustainability orientation of small firms. J Bus Ethics 111(4):461–76
  • Russo MV and Fouts PA. 1997. A resource-based perspective on corporate environmental performance and profitability. Acad Manage J 40(3):534–59
  • Russo MV and Harrison NS. 2005. Organizational design and environmental performance: Clues from the electronics industry. Acad Manage J 48(4):582–93
  • Sanders WG and Carpenter MA. 1998. Internationalization and firm governance: The roles of CEO compensation, top team composition, and board structure. Acad Manage J 41(2):158–78
  • Scott WR. 1995. Institutions and organizations: Toward a theoretical synthesis. Sage, Thousand Oaks, CA, USA
  • Sharfman MP and Fernando CS. 2008. Environmental risk management and the cost of capital. Strategic Manage J 29(6):569–92
  • Stanwick PA and Stanwick SD. 2001. CEO compensation: Does it pay to be green? Bus Strateg Environ 10(3):176–82
  • Stern I, Dukerich JM, and Zajac E. 2013. Unmixed signals: How reputation and status affect alliance formation. Strategic Manage J doi:10.1002/smj.2116
  • Tang Z and Tang J. 2013. Can the media discipline Chinese firms’ pollution behaviors? The mediating effects of the public and government. J Manage doi:10.1177/0149206313515522
  • Ullmann AA. 1985. Data in search of a theory: A critical examination of the relationships among social performance, social disclosure, and economic performance of US firms. Acad Manage Rev 10(3):540–57
  • Van Rooij B. 2006. Implementation of Chinese environmental law: Regular enforcement and political campaigns. Dev Change 37(1):57–74
  • Van Rooij B and Lo CWH. 2010. Fragile convergence: Understanding variation in the enforcement of China's industrial pollution law. Law Policy 32(1):14–37
  • Wagner M. 2010. The role of corporate sustainability performance for economic performance: A firm-level analysis of moderation effects. Ecol Econ 69(7):1553–60
  • Wahba H. 2008. Does the market value corporate environmental responsibility? An empirical examination. Corp Soc Resp Environ Manage 15(2):89–99
  • Walls JL, Berrone P, and Phan PH. 2012. Corporate governance and environmental performance: Is there really a link? Strategic Manage J 33(8):885–913
  • Walls JL and Hoffman AJ. 2013. Exceptional boards: Environmental experience and positive deviance from institutional norms. J Organ Behav 34(2):253–71
  • Wang AL. 2013. The search for sustainable legitimacy: Environment law and bureaucracy in China. Harvard Environ Law Rev 37(2):365–440
  • Wang J and Coffey BS. 1992. Board composition and corporate philanthropy. J Bus Ethics 11(10):771–78
  • Wang Y and Mao X. 2013. Risk analysis and carbon footprint assessments of the paper industry in China. Hum Ecol Risk Assess 19(2):410–22
  • Wei Z, Xie F, and Posthuma RA. 2011. Does it pay to pollute? Shareholder wealth consequences of corporate environmental lawsuits. Int Rev Law Econ 31(3):212–18
  • Wooldridge JM. 2009. Introductory econometrics: A modern approach. South-Western, Mason, OH, USA
  • Xu XD, Zeng SX, and Tam CM. 2012. Stock market's reaction to disclosure of environmental violations: Evidence from China. J Bus Ethics 107(2):227–37
  • Zeng SX, Xu XD, Dong ZY, et al. 2010. Towards corporate environmental information disclosure: An empirical study in China. J Clean Prod 18(12):1142–8
  • Zeng SX, Xu XD, Yin HT, et al. 2012. Factors that drive Chinese listed companies in voluntary disclosure of environmental information. J Bus Ethics 109(3):309–21
  • Zhang JQ, Zhu H, and Ding H-b. 2012. Board composition and corporate social responsibility: An empirical investigation in the post Sarbanes-Oxley Era. J Bus Ethics 114(3):381–92
  • Zhao HH, Gao Q, Wu YP, et al. 2013. What affects green consumer behavior in China? A case study from Qingdao. J Clean Prod doi:10.1016/j.jclepro.2013.05.021
  • Zhu Q, Cordeiro J, and Sarkis J. 2013. Institutional pressures, dynamic capabilities and environmental management systems: Investigating the ISO 9000–Environmental management system implementation linkage. J Environ Manage 114(5):232–42

Reprints and Corporate Permissions

Please note: Selecting permissions does not provide access to the full text of the article, please see our help page How do I view content?

To request a reprint or corporate permissions for this article, please click on the relevant link below:

Academic Permissions

Please note: Selecting permissions does not provide access to the full text of the article, please see our help page How do I view content?

Obtain permissions instantly via Rightslink by clicking on the button below:

If you are unable to obtain permissions via Rightslink, please complete and submit this Permissions form. For more information, please visit our Permissions help page.