Venture Capital, Compensation Incentive, and Corporate Sustainable Development

Innovation is one of the primary approaches by which companies address progressively severe social, environmental, and market pressures that they face, it a crucial route for to maintain sustainable development. Venture capital (VC) plays significant role in promoting enterprise innovation, especially breakthrough innovation. can increase executive compensation corporate Previous studies have also indicated incentives be beneficial Although relationships between two these three variables been validated, relationship VC, compensation, innovation has not yet received ample consideration. Our research focuses on connections among variables, we chose our sample, listed corporations Shenzhen Shanghai stock exchanges period from 2009 2017. We found VC mediating effect through incentives, although necessarily full mediation effect—merely partial one. Moreover, primarily incentive amplifying internal salary gap corporate. By employing invention patents replace explanatory using Heckman two-stage method, utilizing propensity score matching (PSM) robustness testing, validity conclusion was confirmed. In addition, discovered experienced or with lower governance quality are more likely use promote This study provides valuable insight cultivating as well corporates looking boost their