EconPapers    
Economics at your fingertips  
 

How Officials’ Political Incentives Influence Corporate Green Innovation

Shenggang Ren (), Donghua Liu () and Ji Yan ()
Additional contact information
Shenggang Ren: Central South University
Donghua Liu: Wuhan University of Technology
Ji Yan: Durham University Business School

Journal of Business Ethics, 2024, vol. 194, issue 3, No 8, 633-653

Abstract: Abstract Drawing on tournament theory, we argue that when environmental goals are incorporated into the cadre evaluation system, compared to officials who are close to retirement (i.e., retiring officials), non-retiring officials may exert more effort to foster risky green innovation. Based on a sample of publicly traded firms from heavily polluting industries in China between 2008 and 2016, we hypothesize and find that confronted with severe environmental pollution, firms in provinces with non-retiring governors have higher green innovation performance than those in provinces with retiring governors. Moreover, we find that this effect is stronger for firms in provinces whose governors have higher promotion anticipation, for local state-owned enterprises (SOEs), and for politically connected firms. Our study identifies the political incentives of government officials as an important antecedent of corporate green innovation and highlights the value of establishing a “green” cadre evaluation system to promote sustainable development.

Keywords: Political incentives; Tournament theory; Green innovation (search for similar items in EconPapers)
Date: 2024
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
http://link.springer.com/10.1007/s10551-024-05622-1 Abstract (text/html)
Access to full text is restricted to subscribers.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:kap:jbuset:v:194:y:2024:i:3:d:10.1007_s10551-024-05622-1

Ordering information: This journal article can be ordered from
http://www.springer. ... cs/journal/10551/PS2

DOI: 10.1007/s10551-024-05622-1

Access Statistics for this article

Journal of Business Ethics is currently edited by Michelle Greenwood and R. Edward Freeman

More articles in Journal of Business Ethics from Springer
Bibliographic data for series maintained by Sonal Shukla () and Springer Nature Abstracting and Indexing ().

 
Page updated 2025-03-19
Handle: RePEc:kap:jbuset:v:194:y:2024:i:3:d:10.1007_s10551-024-05622-1