We investigate the interrelationships among carbon performance, CEO Pay, executive compensation, financial performance and market value. Using data relating to non-financial firms from UK FTSE 350 from 2009 to 2018, our findings are fourfold. First, our results suggest that actual carbon performance is negatively associated with financial performance and market value of firms. Second, we document that self-reported carbon performance has no effect on financial performance. By contrast, we observe that self-reported carbon reduction initiatives performance has positive impact on market value. Third, our results suggest that CEO Pay, and executive compensation have positive moderating effect on the association between self-reported carbon performance and financial performance. In addition, we show that self-reported carbon performance–market value nexus is positively moderated by CEO Pay and executive compensation. Fourth, we observe that CEO Pay, and executive compensation have no moderating impact on actual carbon performance–market value nexus. Our findings demonstrate that while firms appear to employ compensation incentives to symbolically enhance their self-reported carbon performance, this does not result in actual carbon emission reduction. Our findings have key implications for policymakers.

中文翻译：

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碳绩效、财务绩效和市场价值：薪酬激励的调节作用

我们调查了碳绩效、CEO 薪酬、高管薪酬、财务绩效和市场价值之间的相互关系。使用 2009 年至 2018 年英国富时 350 指数非金融公司的相关数据，我们的发现有四方面。首先，我们的结果表明，实际碳绩效与公司的财务绩效和市场价值呈负相关。其次，我们记录了自我报告的碳绩效对财务绩效没有影响。相比之下，我们观察到自我报告的碳减排举措绩效对市场价值有积极影响。第三，我们的结果表明，CEO 薪酬和高管薪酬对自我报告的碳绩效与财务绩效之间的关联具有正向调节作用。此外，我们表明，自我报告的碳绩效-市场价值关系受到 CEO 薪酬和高管薪酬的积极调节。第四，我们观察到 CEO 薪酬和高管薪酬对实际碳绩效-市场价值关系没有调节作用。我们的研究结果表明，虽然公司似乎采用薪酬激励来象征性地提高他们自我报告的碳绩效，但这并没有导致实际的碳排放减少。我们的研究结果对决策者具有重要意义。我们的研究结果表明，虽然公司似乎采用薪酬激励来象征性地提高他们自我报告的碳绩效，但这并没有导致实际的碳排放减少。我们的研究结果对决策者具有重要意义。我们的研究结果表明，虽然公司似乎采用薪酬激励来象征性地提高他们自我报告的碳绩效，但这并没有导致实际的碳排放减少。我们的研究结果对决策者具有重要意义。