Do executive equity incentives enhance corporate ESG performance?

We examine the relationship between executive equity incentives (EEI) and corporate environmental, social, and governance (ESG) performance. How does EEI influence corporate ESG performance? Results indicate that EEI significantly enhances corporate ESG performance, with this effect being more pronounced in growth stages and high-tech enterprises. Corporate governance plays a crucial mediating role, as a robust governance structure improves ESG performance. Investor focus, as a moderating variable, amplifies the positive impact of EEI on ESG performance. We provide new insights for designing equity incentive mechanisms to promote sustainable corporate development.