Exploring the Impact Mechanism of Executives' Environmental Attention on Corporate Green Transformation—Evidence from MD&A Textual Analysis of Chinese Companies

Abstract

The allocation of executives' environmental attention (EEA) is of great significance in promoting the green upgrading of industrial structures and achieving corporate green transformation. Based on upper echelon theory and the attention-based view, we use panel data of Chinese manufacturing companies from 2015-2020 to construct a two-way fixed effects model to explore the impact mechanism of EEA on corporate green transformation performance (CGTP). Baseline regression shows that EEA significantly improves CGTP. The reliability of findings is verified by reducing time windows, replacing the independent variable, expanding the data source and adding missing variables. In the heterogeneity analysis, the positive effect of EEA on CGTP is significant for eastern companies and does not differ in the property rights grouping. After propensity score matching, environmental attributes grouping shows that the positive effect of EEA on CGTP is more significant for non-heavy polluters. Extended research shows that government subsidies have a positive moderating effect, while female executives play only a symbolic role. Moreover, green innovation activities have positive partial mediating effects. Green innovation is the best way to address environmental pollution and achieve corporate green transformation. Our research provides implications for decision-makers to allocate their attention, and thereby achieve green development appropriately.

The impact of environmental regulation, Environment, Social and Government Performance, and technological innovation on enterprise resilience under a green recovery

“…The cognitive abilities of top management and their teams provide intellectual support for the organization's responsiveness and strategic decision-making in times of crisis. The composition and processes of the top management team play a crucial role in determining the strategic direction of corporate development [ 17 ]. In recent years, corporate management models based on environmental, social, and governance (ESG) principles have gained widespread recognition.…”