The current study examines the relationship between financialization, managers’ incentives, and the enterprise’s innovation. Based on the principal-agent and incentive theories, this study proposes a research model with two management incentives as moderating variables between financialization and the enterprise’s innovation. First, we analyze the direct relationship between financialization and the enterprise’s innovation. Second, we examine the moderating effect of managers’ equity incentive and compensation incentives on the relationship between entity financialization and the enterprise’s innovation in high-tech/non-high-tech enterprises and state-owned and non-state-owned enterprises. This study covers the most recent updated data from both A-share listed companies in the Shenzhen and Shanghai stock exchange in China from 2009 to 2019. This study’s finding indicates a significant negative impact of entity financialization and the enterprise’s innovation. It means that the entity financial has a significant “crowding-out” effect on the enterprise’s innovation. This study also confirms that management incentives cannot effectively suppress a “crowding-out” impact of entity financialization on firm innovation because of the principal-agent severe problem in financialization. Finally, considering the heterogeneities of property rights and degrees of dependence on the enterprise’s innovation, a “crowding-out” effect of entity financialization on the enterprise’s innovation is more significant in high-tech and state-owned enterprises. Managers’ equity incentive significantly affects the enterprise’s innovation in high-tech enterprises, while the managers’ compensation incentive affects the enterprise’s innovation in state-owned enterprises. Our study could help the enterprise to improve the company manager’s incentive and provide the optimal assets allocation to improve the enterprise’s innovation ability. Lastly, this study provides significant policies and recommendations for the public sector high-tech enterprise and private sector high-tech enterprises. Moreover, policies and recommendations are fruitful for the public sector non-high-tech enterprise and private sector non-high-tech enterprise.
The study examined the decoupling relationship between industry carbon emissions and economic growth using the most current updated data. We collected data from the industry sector of Pakistan from 1991 to 2018. This study used two techniques, Tapio’s elasticity and fluctuation index, to test the decoupling relationship and the relationship’s stability between industry carbon emissions and economic growth. First, we analyzed the decoupling relationship between industry carbon emissions and economic growth in Pakistan using Tapio’s decoupling model, decoupling the elasticity of technology, scale and structure. Second, the decoupling volatility index was used to determine the stability of the technology, scale and structure elasticity. The Tapio decoupling elasticity technique results confirmed the significant relationship between industry CO2 emissions, economic growth and added value comes out to be a simple feature of each stage and undergoes expansive negative and strong decoupling processes. The outcomes of elastically decoupled volatility indexes suggest that three out of four indices are high, indicating unstable decoupling conditions. This study concludes that growth and volatility were the crucial characteristics of industrial carbon emissions during 1991–2018. Hence, the industry’s carbon emissions were increased from 16.67 million tons in 1991 to 55.70 million tons in 2018, an average yearly growth of 4.56%.
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