How Does CEO's Environmental Awareness Affect Technological Innovation?
In this paper, we conduct an empirical study on the impact of CEOs' environmental awareness on technological innovation. To this end, we obtain a large sample with 7615 observations from Chinese A-share listed firms between the years of 2003 and 2014. Our empirical results show that a CEO'...
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Published in | International journal of environmental research and public health Vol. 16; no. 2; p. 261 |
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Main Authors | , , , , |
Format | Journal Article |
Language | English |
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17.01.2019
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Abstract | In this paper, we conduct an empirical study on the impact of CEOs' environmental awareness on technological innovation. To this end, we obtain a large sample with 7615 observations from Chinese A-share listed firms between the years of 2003 and 2014. Our empirical results show that a CEO's environmental awareness has a significant positive impact on technological innovation of his/her enterprise. Environmentally conscious CEOs will invest more in R&D and obtain more patents. This will help their enterprises achieve higher efficiency of technological innovation. Furthermore, the environmental awareness of a CEO has a more significant impact on technological innovation if his/her enterprise is subject to a higher level of monitoring. We also conduct robustness check of our findings and provide managerial insights and proactive government policies to raise the environmental awareness of CEOs and improve the innovation vitality of enterprises. |
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AbstractList | In this paper, we conduct an empirical study on the impact of CEOs’ environmental awareness on technological innovation. To this end, we obtain a large sample with 7615 observations from Chinese A-share listed firms between the years of 2003 and 2014. Our empirical results show that a CEO’s environmental awareness has a significant positive impact on technological innovation of his/her enterprise. Environmentally conscious CEOs will invest more in R&D and obtain more patents. This will help their enterprises achieve higher efficiency of technological innovation. Furthermore, the environmental awareness of a CEO has a more significant impact on technological innovation if his/her enterprise is subject to a higher level of monitoring. We also conduct robustness check of our findings and provide managerial insights and proactive government policies to raise the environmental awareness of CEOs and improve the innovation vitality of enterprises. According to Upper Echelon Theory [13], the strategic choice of a company is, to a large extent, influenced by personal cognition of its CEO. [...]monitoring may play an important role between a CEO’s environmental awareness and the technological innovation of his/her enterprise. [...]CEO’s stronger awareness of environmental protection may be similar to environmental supervision and has similar positive effect on enterprise innovation. In such a dilemma, technological innovation is crucial to driving the company’s upgrade. [...]in developing countries, CEOs with stronger environmental awareness can more clearly understand the cost pressure brought by development of environmental strategy. |
Author | Huang, Qinghua Chen, Xiding Zhou, Mi Duan, Lingling Zhang, Xiaoqin |
AuthorAffiliation | 1 School of Economics and Management, Southwest University, Chongqing 400715, China; hqh@swu.edu.cn (Q.H.); z19951001@email.swu.edu.cn (M.Z.); zxq0113@email.swu.edu.cn (X.Z.) 2 Department of Finance, Wenzhou Business College, Wenzhou 325035, Zhejiang, China |
AuthorAffiliation_xml | – name: 1 School of Economics and Management, Southwest University, Chongqing 400715, China; hqh@swu.edu.cn (Q.H.); z19951001@email.swu.edu.cn (M.Z.); zxq0113@email.swu.edu.cn (X.Z.) – name: 2 Department of Finance, Wenzhou Business College, Wenzhou 325035, Zhejiang, China |
Author_xml | – sequence: 1 givenname: Qinghua surname: Huang fullname: Huang, Qinghua email: hqh@swu.edu.cn organization: School of Economics and Management, Southwest University, Chongqing 400715, China. hqh@swu.edu.cn – sequence: 2 givenname: Xiding orcidid: 0000-0001-7801-2261 surname: Chen fullname: Chen, Xiding email: chanxd@wzbc.edu.cn organization: Department of Finance, Wenzhou Business College, Wenzhou 325035, Zhejiang, China. chanxd@wzbc.edu.cn – sequence: 3 givenname: Mi surname: Zhou fullname: Zhou, Mi email: z19951001@email.swu.edu.cn organization: School of Economics and Management, Southwest University, Chongqing 400715, China. z19951001@email.swu.edu.cn – sequence: 4 givenname: Xiaoqin surname: Zhang fullname: Zhang, Xiaoqin email: zxq0113@email.swu.edu.cn organization: School of Economics and Management, Southwest University, Chongqing 400715, China. zxq0113@email.swu.edu.cn – sequence: 5 givenname: Lingling surname: Duan fullname: Duan, Lingling email: demwd150@email.swu.edu.cn organization: School of Economics and Management, Southwest University, Chongqing 400715, China. demwd150@email.swu.edu.cn |
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Snippet | In this paper, we conduct an empirical study on the impact of CEOs' environmental awareness on technological innovation. To this end, we obtain a large sample... In this paper, we conduct an empirical study on the impact of CEOs’ environmental awareness on technological innovation. To this end, we obtain a large sample... According to Upper Echelon Theory [13], the strategic choice of a company is, to a large extent, influenced by personal cognition of its CEO. [...]monitoring... |
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SubjectTerms | Administrative Personnel - psychology Awareness China Cognition Competition Competitive advantage Developing countries Environment Environmental awareness Environmental impact Environmental policy Environmental protection Executives Humans Hypotheses Innovations Inventions - statistics & numerical data LDCs Leadership Managers Organizations Product development R&D Research & development Sustainable development Technological change |
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Title | How Does CEO's Environmental Awareness Affect Technological Innovation? |
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