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Board internationalization and green innovation

Author

Listed:
  • 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. Rania Beji & Ouidad Yousfi & Nadia Loukil & Abdelwahed Omri, 2020. "Board Diversity and Corporate Social Responsibility: Empirical Evidence from France," Post-Print hal-03029297, HAL.
    2. 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.
    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)

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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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