Decision-making of powerful CEOs on green innovation: The roles of performance feedback and institutional investors

IF 2.8 3区 经济学 Q2 BUSINESS, FINANCE International Journal of Finance & Economics Pub Date : 2023-07-27 DOI:10.1002/ijfe.2870
Jianyu Zhao, Jing Qu
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Abstract

This study assesses the effects of CEO power on green innovation and, more importantly, explores how different performance feedback affects this relationship by considering the positive and negative aspects of financial and environmental performance feedback. We further discuss how institutional investors respond to the decision-making of powerful CEOs on green innovation. By using Chinese manufacturing observations, we find that although powerful CEOs positively promote firms' green innovation, this positive effect does not apply to all conditions. The impacts of CEO power on green innovation are different under the positive and negative aspects of performance feedback, and under financial and environmental performance feedback. Accordingly, heterogeneous institutional investors respond differently to these various situations. Specifically, pressure-resistant institutional investors serve as ‘supervisors’ under the positive aspects of financial and environmental performance feedback and shift to ‘bystanders’ under the negative aspects of financial and environmental performance feedback. Pressure-sensitive institutional investors always act as ‘bystanders’ under different performance feedback.

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强势首席执行官的绿色创新决策:绩效反馈和机构投资者的作用
本研究评估了首席执行官权力对绿色创新的影响,更重要的是,通过考虑财务和环境绩效反馈的积极和消极方面,探讨了不同的绩效反馈如何影响这种关系。我们还进一步讨论了机构投资者如何应对强势首席执行官在绿色创新方面的决策。通过对中国制造业的观察,我们发现尽管有权势的首席执行官会积极促进企业的绿色创新,但这种积极效应并不适用于所有条件。在绩效反馈的正反两方面、财务绩效反馈和环境绩效反馈下,CEO 权力对绿色创新的影响是不同的。相应地,异质机构投资者对这些不同情况的反应也不同。具体来说,抗压型机构投资者在财务和环境绩效反馈的积极方面充当 "监督者",而在财务和环境绩效反馈的消极方面则转变为 "旁观者"。对压力敏感的机构投资者在不同的绩效反馈下始终扮演 "旁观者 "的角色。
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CiteScore
5.70
自引率
6.90%
发文量
143
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