Experience and cautious decision-making: Executive green background, environmental investment, and informal institutions

Xuanmei Cheng, Fangfei Teng, Brian M. Lucey, Anna Min Du and Chengnan Li

International Review of Financial Analysis, 2025, vol. 103, issue C

Abstract: This study explores how executives with green backgrounds influence corporate environmental protection investment, focusing on the moderating role of informal institutions such as media attention and Confucian culture. Using data from 166 A-share listed companies in the new energy vehicle industry (2010−2022), the results indicate that managers with green backgrounds tend to reduce environmental protection investment, and technological innovation often crowds out such investments. Firms with greater innovation capacity show a stronger negative effect on environmental investment. Media attention and Confucian culture both moderate this relationship by weakening the reduction in environmental investment. These findings offer new insights and practical guidance for corporate green governance.

Keywords: Green governance; Executive green background; Environmental protection investment; Informal institutions (search for similar items in EconPapers)
Date: 2025
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Persistent link: https://EconPapers.repec.org/RePEc:eee:finana:v:103:y:2025:i:c:s105752192500242x

DOI: 10.1016/j.irfa.2025.104155

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