Executives’ ESG cognition and enterprise green innovation: Evidence based on executives’ personal microblogs

Abstract

Based on cognitive theory, we investigated the influence of executives’ ESG cognition on corporate green innovation using data from Chinese manufacturing listed companies from 2010 to 2019. The paper first constructs a metric of ESG cognition of company executives by presenting a quantitative analysis of data from their personal microblogs using textual analysis. The findings show that executive ESG perceptions significantly improve corporate green innovation. After addressing the endogeneity issue through a series of robustness tests, the findings of this paper still held true. Further research found that the enhancement effect of executive ESG perceptions on firms’ green innovation level was mainly found in the sample without heavy pollution and with lower financing constraints and a higher marketization process. This study makes an important contribution to the research on corporate green innovation based on the perspective of executive ESG cognition while also providing a theoretical basis and practical reference for corporate green innovation practices.

The Impact of Patent Applications in the Context of the ESG Model at World Level

“…Firms that apply the ESG model have also good results in improving patenting as showed in a set of A-share listed companies in China in the period 2001-2020 [14]. Managers that have an ESG orientation tend to promote also green innovation and patenting in a set of Chinese listed companies in the period 2010-2019 [15]. The Environmental Cooperation System of Shenzhen-Dongguan-Huizhou Metropolis (ECS-SDHM) has a positive impact in promoting either ESG performance either green corporate innovation [16].…”

“…They are all free version without licenses. References by Themes Themes References ESG scores, innovations and patent applications [1], [2], [3], [4], [5], [6], [7], [8] , [9], [10], [11], [12], [13] , [14], [15], [16], [17], [18], [19], [20], [21] Patent applications and SDG…”

The Spillover Effect of ESG Performance on Green Innovation—Evidence from Listed Companies in China A-Shares

“…Prior research on green innovation mostly concentrates on topics such as corporate governance, environmental conservation, technological advancement, and so forth. For instance, researchers have discovered that executives' knowledge of ESG [36] and companies' foreign direct investment [37] will enhance companies' green innovation. However, the short-sighted actions of managers will impede the progress of green innovation [38].…”

The Impact of Patent Applications in the Context of the ESG Model at World Level

“…They are all free version without licenses. [1], [2], [3], [4], [5], [6], [7], [8] , [9], [10], [11], [12], [13] , [14], [15], [16], [17], [18], [19], [20], […”