Making Sustained Green Innovation in Firms Happen: The Role of CEO Openness

Li Liu, Wenxiu Hu, Fangyun Wang and Li Yang ()
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Li Liu: School of Economics and Management, Xi’an University of Technology, Xi’an 710048, China
Wenxiu Hu: School of Economics and Management, Xi’an University of Technology, Xi’an 710048, China
Fangyun Wang: School of Economics and Management, Xi’an University of Technology, Xi’an 710048, China
Li Yang: School of Economics and Finance, Xi’an International Studies University, Xi’an 710128, China

Sustainability, 2025, vol. 17, issue 11, 1-24

Abstract: Sustained green innovation in firms is a crucial driver of sustainable economic development. Chief executive officer (CEO) openness, as a key personality trait related to leadership effectiveness, has an important but largely overlooked impact on sustained green innovation. This study aims to explore the impact of CEO openness on sustained green innovation and its boundary conditions. Using data from Chinese A-share-listed firms between 2011 and 2023, we find that CEO openness has a significant positive impact on sustained green innovation in firms. The moderating effects reveal that both digitalization level and CEO shareholding strengthen the positive effect of CEO openness on sustained green innovation. Heterogeneity analysis indicates that this positive effect is more pronounced in state-owned enterprises, firms in non-heavily polluting industries, and those with high analyst coverage. These findings provide theoretical support for understanding the determinants of sustained green innovation through the lens of CEO personality. They also enrich the growing literature on the impact of CEO openness on corporate decision-making. Furthermore, this study recommends that firms prioritize CEO openness in selection, enhance digital infrastructure, and improve equity incentive measures to ultimately foster sustained green innovation.

Keywords: sustained green innovation; CEO openness; digitalization level; CEO shareholding; moderating effect (search for similar items in EconPapers)
JEL-codes: O13 Q Q0 Q2 Q3 Q5 Q56 (search for similar items in EconPapers)
Date: 2025
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