The daughter effect and green innovation: Evidence from China

Green innovation is a pivotal strategy in corporate environmental governance. This study utilizes data from Chinese A-share private companies to investigate the impact of the gender of a chairperson's offspring on green innovation. Our findings reveal that chairpersons who are raising daughters are more inclined to foster green innovation, particularly green invention innovation, within their firms. This “daughter effect” is more pronounced in environmentally-sensitive industries, firms with greater financial flexibility, and firms led by chairpersons who were born in less-patriarchal regions. Our channel analysis suggests that chairpersons who are raising daughters allocate less financial asset and exhibit stronger environmental awareness. Furthermore, the green innovation associated with the “daughter effect” can attract government environmental subsidies for firms. Our research contributes to the literature on the role of a chairperson's family dynamics in fostering green innovation and highlights the broader influence of the “daughter effect” in shaping corporate leadership behavior.