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Board internationalization and green innovation

Author

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  • Usman, Muhammad
  • Javed, Muzhar
  • Yin, Junming

Abstract

Amid the rapid transition towards a low-carbon world, this study resolves how a nationally-diverse board affects a firm’s inclination towards green innovation. Using eleven years (2005–2015) data of all A-share manufacturing companies listed on the Shanghai and Shenzhen stock exchange, we find reliable evidence that board internationalization strengthens the tendency of firms towards green business practices. Further, we document that state-owned firms have a stronger aptitude to capitalize on the presence of foreign directors on the board when compared with non-state-owned firms.

Suggested Citation

  • Usman, Muhammad & Javed, Muzhar & Yin, Junming, 2020. "Board internationalization and green innovation," Economics Letters, Elsevier, vol. 197(C).
    • Handle: RePEc:eee:ecolet:v:197:y:2020:i:c:s0165176520303852
    DOI: 10.1016/j.econlet.2020.109625
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    References listed on IDEAS

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    1. Paul A David (with the assistance of John Gabriel Goddard Lopez), 2000. "Knowledge, Capabilities and Human Capital Formation in Economic Growth," Treasury Working Paper Series 01/13, New Zealand Treasury, revised 10 Apr 2001.
    2. Rania Beji & Ouidad Yousfi & Nadia Loukil & Abdelwahed Omri, 2020. "Board Diversity and Corporate Social Responsibility: Empirical Evidence from France," Post-Print hal-03029297, HAL.
    3. Muhammad Nadeem & Stephen Bahadar & Ammar Ali Gull & Umer Iqbal, 2020. "Are women eco‐friendly? Board gender diversity and environmental innovation," Business Strategy and the Environment, Wiley Blackwell, vol. 29(8), pages 3146-3161, December.
    Full references (including those not matched with items on IDEAS)

    Citations

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    Cited by:

    1. Sajid Ullah & Farman Ullah Khan & Laura-Mariana Cismaș & Muhammad Usman & Andra Miculescu, 2022. "Do Tournament Incentives Matter for CEOs to Be Environmentally Responsible? Evidence from Chinese Listed Companies," IJERPH, MDPI, vol. 19(1), pages 1-20, January.
    2. Yousaf, Umair Bin & Ullah, Irfan & Jiang, Junchen & Wang, Man, 2022. "The role of board capital in driving green innovation: Evidence from China," Journal of Behavioral and Experimental Finance, Elsevier, vol. 35(C).
    3. Shuang Meng & Pengxiang Wang & Jiajie Yu, 2022. "Going Abroad and Going Green: The Effects of Top Management Teams’ Overseas Experience on Green Innovation in the Digital Era," IJERPH, MDPI, vol. 19(22), pages 1-20, November.
    4. Zhang, Xuejiao & Huang, Shoufeng & Li, Wanfu & Wang, Yu, 2023. "Directors' and officers' liability insurance, environmental regulation and firms' envi ronmental responsibility," Ecological Economics, Elsevier, vol. 208(C).
    5. Yu Wang & Yetaotao Qiu & Yi Luo, 2022. "CEO foreign experience and corporate sustainable development: Evidence from China," Business Strategy and the Environment, Wiley Blackwell, vol. 31(5), pages 2036-2051, July.
    6. Xihui Chen & Juan Ou & Xuemei Tang & Qinghe Yang, 2023. "The Impact of Officials’ Off-Office Accountability Audit of Natural Resource Assets on Firms’ Green Innovation Strategies: A Quasi-Natural Experiment in China," Sustainability, MDPI, vol. 15(3), pages 1-36, February.
    7. Wu, Jiamei & Chen, Zhibin & Guo, Chong, 2022. "How does anti-corruption affect green innovation? Evidence from China," Economic Analysis and Policy, Elsevier, vol. 73(C), pages 405-424.
    8. Javed, Muzhar & Wang, Fangjun & Usman, Muhammad & Ali Gull, Ammar & Uz Zaman, Qamar, 2023. "Female CEOs and green innovation," Journal of Business Research, Elsevier, vol. 157(C).
    9. Zhang, Cheng & Zhou, Bo & Tian, Xuan, 2022. "Political connections and green innovation: The role of a corporate entrepreneurship strategy in state-owned enterprises," Journal of Business Research, Elsevier, vol. 146(C), pages 375-384.
    10. Sohail Ahmad Javeed & Rashid Latief & Umair Akram, 2023. "The Effects of Board Capital on Green Innovation to Improve Green Total Factor Productivity," Sustainability, MDPI, vol. 15(13), pages 1-18, June.
    11. Jianfei Zhao & Anan Pongtornkulpanich & Wenjin Cheng, 2022. "The Impact of Board Size on Green Innovation in China’s Heavily Polluting Enterprises: The Mediating Role of Innovation Openness," Sustainability, MDPI, vol. 14(14), pages 1-20, July.
    12. Li, Wanfu & Jiang, Mengmeng & Zhang, Xuejiao & Wang, Yu & Qu, Xiaoyi, 2023. "Does foreign experience of top management affect corporate environmental responsibility? Evidence from China," Economic Modelling, Elsevier, vol. 122(C).
    13. Luo, Yi & Ma, Jian & Wang, Yu & Ye, Aishan, 2022. "Board internationalization and corporate social responsibility," The North American Journal of Economics and Finance, Elsevier, vol. 63(C).
    14. Lin, Boqiang & Xie, Yongjing, 2023. "The impact of government subsidies on capacity utilization in the Chinese renewable energy industry: Does technological innovation matter?," Applied Energy, Elsevier, vol. 352(C).
    15. Shanshan Li & Yujie Wang & Yuannan Zheng & Jichao Geng & Junqi Zhu, 2022. "Research on Energy Saving and Environmental Protection Management Evaluation of Listed Companies in Energy Industry Based on Portfolio Weight Cloud Model," Energies, MDPI, vol. 15(12), pages 1-18, June.

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    More about this item

    Keywords

    Board internationalization; Foreign directors; Green innovation;
    All these keywords.

    JEL classification:

    • G38 - Financial Economics - - Corporate Finance and Governance - - - Government Policy and Regulation
    • Q55 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environmental Economics: Technological Innovation
    • Q56 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environment and Development; Environment and Trade; Sustainability; Environmental Accounts and Accounting; Environmental Equity; Population Growth
    • Q57 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Ecological Economics

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