Celebrating Success: Dr Vu Trinh (Rainy)

Congratulations to Dr Vu Trinh (Rainy) who was recently appointed as an Academic Editor of the PLoS One Journal. The role is to handle the paper submission in fields of finance, accounting and business.

Rainy and his co-authors Tam Nguyen (Nottingham University), Dr Giang Phung (ISC Paris Business School, Paris, France) and Hai Trinh (Massey University, New Zealand) have also recently had their paper entitled “Top-management compensation and environmental innovation strategy” published in the journal Business Strategy and The Environment.

Abstract

The increasing awareness of global climate change puts more pressure on firms to reduce their environmental externalities. Managers long ignored this responsibility, which may erode business profits, going against their traditional goals. In this study, we examine the effect of top management’s extrinsic incentives (i.e., reward-driven motivation) on corporate environmental innovation strategy (i.e., eco-innovation) using a large dataset of S&P1500 non-financial firms for 2000–2020. The results indicate that firms with greater levels of top-management compensation exhibit higher scores of eco-innovation engagement. The effect holds after we address the endogeneity problem through the quasi-natural experiment using the difference-in-differences analysis on the event of the Paris Agreement 2015. Our further investigations reveal that such a positive impact of managerial incentives on eco-innovation is less intensified in the more polluting industries but more pronounced in more innovative ones.