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CEOs’ green governance abilities and corporate green innovation

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  • Cai, Chu’an
  • Huang, Siyu
  • Li, Donghui

Abstract

Drawing on upper echelons theory, this study investigates how CEOs’ green governance abilities drive corporate green innovation. Using a dataset of Chinese firms covering 2013–2022 and a multidimensional measure of CEOs’ green governance abilities, we provide robust evidence that CEOs with stronger green governance abilities significantly promote corporate green innovation. The results remain consistent across multiple robustness checks and after addressing endogeneity concerns. Furthermore, we identify three mechanisms: strengthening firms’ green strategic orientation, hiring middle managers with green technology and increasing environmental information disclosure. This positive effect is more pronounced in firms that are less polluting and face lower financing constraints. Our findings contribute to the literature on executive abilities and corporate innovation by highlighting the CEOs’ role in driving green innovation.

Suggested Citation

  • Cai, Chu’an & Huang, Siyu & Li, Donghui, 2026. "CEOs’ green governance abilities and corporate green innovation," Research in International Business and Finance, Elsevier, vol. 88(C).
    • Handle: RePEc:eee:riibaf:v:88:y:2026:i:c:s0275531926001698
    DOI: 10.1016/j.ribaf.2026.103442
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