| Title | The association between managerial short-termism and green innovation: the moderating role of firms' digital transformation |
|---|---|
| ID_Doc | 62459 |
| Authors | Xu, XH; Liu, Y |
| Title | The association between managerial short-termism and green innovation: the moderating role of firms' digital transformation |
| Year | 2023 |
| Published | |
| Abstract | PurposeThe purpose of this study is to examine the impact of managerial short-termism on green innovation of firms and the moderating role of digital transformation of enterprises in the association between managerial short-termism and green innovation.Design/methodology/approachThis study uses data from Chinese A-share listed companies from 2001 to 2021 and employ panel fixed model and moderating effect model to examine the impact of managerial short-termism on green innovation of firms and the moderating role of digital transformation of enterprises in the association between managerial short-termism and green innovation.FindingsThe findings of this study reveal that managerial short-termism exerts negative influence on green innovation. Digital transformation enables firms to reduce the adverse effect of managerial short-termism on green innovation because digital transformation enhances information processing ability and then improves internal corporate governance and analyst coverage. Moreover, the moderating role of digital transformation is more prominent for firms with lower internal corporate governance, for firms with less analyst coverage and for non-state-owned enterprises.Originality/valueThis paper intends to address the following two questions: what is the impact of managerial short-termism on green innovation and what is the role of digital transformation in the two variables' association? By using data of Chinese A-share listed companies from 2001 to 2021 and developing two individual indexes to measure managerial short-termism and digital transformation, the authors empirically test these above two questions. The results of this study indicate that: First, drawn on time-oriented theory and upper echelon theory, managerial short-termism has an adverse effect on firms' green innovation. Second, digital transformation enables firms to reduce the negative effect of managerial short-termism on green innovation. Furthermore, the moderating mechanism tests show that the corporate governance effects of digital transformation play a supervisory role that impels managers to reduce short-term investments and promote firms' green R&D investments, which helps to reduce the negative effect of managerial short-termism on green innovation. Additionally, the heterogeneity checks show that the moderating role of digital transformation in the relation between managerial short-termism and green innovation is more prominent for firms with lower internal corporate governance, with less analyst coverage and for non-state-owned enterprises. |
Similar Articles
| ID | Score | Article |
|---|---|---|
62301
|
Sun, Y; He, MY Does digital transformation promote green innovation? A micro-level perspective on the Solow Paradox(2023) | |
| 35620
|
Fan, YJ; Su, Q; Wang, XH; Fan, M Digitalization and green innovation of enterprises: Empirical evidence from China(2023) | |
| 35155
|
Zhang, HK; Wu, JC; Mei, Y; Hong, XY Exploring the relationship between digital transformation and green innovation: The mediating role of financing modes(2024) | |
| 62415
|
She, JH; Zhang, Q Green innovation and enterprise digital transformation: Escape from the "dilemma" of development and governance choices(2024)Plos One, 19, 5 | |
| 62178
|
Liu, QL; Yang, XX; Shen, ZY; Streimikiene, D Digital economy and substantial green innovation: empirical evidence from Chinese listed companies(2024)Technology Analysis & Strategic Management, 36, 10 | |
| 62041
|
Xu, C; Sun, GL; Kong, T The impact of digital transformation on enterprise green innovation(2024) | |
| 31233
|
Zhuo, RF; Zhang, YH; Zheng, JW; Xie, HT Digitalization transformation and enterprise green innovation: empirical evidence from Chinese listed companies(2024) | |
| 62516
|
Liu, K; Liu, XM; Wu, ZH Nexus between Corporate Digital Transformation and Green Technological Innovation Performance: The Mediating Role of Optimizing Resource Allocation(2024)Sustainability, 16, 3 | |
| 62273
|
Yang, JL; Shan, HB; Xian, PL; Xu, XM; Li, N Impact of Digital Transformation on Green Innovation in Manufacturing under Dual Carbon Targets(2024)Sustainability, 16, 17 | |
| 31846
|
Wei, JS; Zheng, QQ Environmental, social and governance performance: dynamic capabilities through digital transformation(2024) |