Propelling the Transition to Circular Economy: Exploring the Role of Corporate Circular Economy Performance‐Based Incentive Policy
研究了高管薪酬和循环经济绩效激励对50个国家企业循环经济实践的影响，发现高管薪酬能显著促进循环经济投入，但绩效激励需结合长期战略才有效。
ABSTRACT This study examines the impact of executive compensation (EC) and corporate circular economy performance incentives (CCEPI) on corporate circular economy initiatives (CCEI) and corporate circular economy performance (CCEP) by integrating legitimacy theory and the resource‐based view. Despite increasing attention to sustainability, there is limited understanding of how governance mechanisms, such as EC and CCEPI, drive circular economy practices. Addressing this gap, we analyse 41,370 firm‐year observations from 50 countries over the period 2002–2022. The findings reveal four key insights: (1) higher EC significantly enhances CCEI, demonstrating greater corporate commitment to circular economy practices; (2) CCEPI positively influences the effectiveness of CE efforts; (3) CCEPI does not directly improve CCEP but strengthens CCEI as a long‐term strategic investment; (4) these relationships vary by country, sector and over time. The study offers crucial implications for policymakers and practitioners, emphasising the role of targeted incentives in promoting sustainable business practices and recognising the contextual factors that affect their effectiveness.