Executive's environmental background and sustainable development: Evidence from substantial green innovation

Abstract

Abstract Executive as decision makers influence the corporate sustainable development, especially their environmental experiences will be internalized in corporate management to promote the development of corporate substantive green innovation. This article empirically explores the impact of executive's environmental background on corporate substantive green innovation based on the data of Chinese A‐share listed companies from 2011 to 2019, and finds that executive's environmental background is conducive to promoting corporate substantive green innovation, which is achieved by obtaining government environmental subsidies and attracting green investors. And further research has revealed that executive's environmental background has a more significant impact on corporate substantive green innovation with higher level of environmental regulations, quality of corporate governance and environmental awareness of executives. The findings of this article not only provides a new perspective for companies to choose a green development path and enhance substantive green innovation, but also provides empirical evidence for companies to promote green transformation and introduce executive with environmental background.

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