Executives’ green cognition and corporate green innovation: evidence from China

Abstract

Based on the cognitive and upper echelons theories, this study investigated the impact of executives’ green cognition on corporate green innovation using panel data on Chinese A-share listed companies from 2007 to 2021. The findings revealed that companies with executives who possess green cognition demonstrated a minimum increase of 12.5% in green innovation compared with companies without such cognition. The mechanism analysis suggested that executives’ green cognition promotes green innovation by alleviating managerial myopia and attracting green investors. The heterogeneous effects analysis indicated that a positive effect is predominantly observed among non-heavy-polluting industries and regions with a lower intensity of environmental regulations. This study identified the positive role of executives’ green psychological cognition, thereby providing insights into incorporating psychological cognitive factors in executive selection to enhance the level of corporate green innovation and promote the construction of corporate quality management.

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