The Influence of Managerial Myopia on Corporate Green Innovation: An Empirical Analysis of A-Share Listed Firms (2012-2021)
Journal Title: Journal of Green Economy and Low-Carbon Development - Year 2023, Vol 2, Issue 3
Abstract
This study examines the relationship between managerial myopia and green innovation in corporations, utilizing data from non-financial and non-insurance A-share listed companies in the period from 2012 to 2021. It constructs a theoretical framework grounded in the principles of long-term investment and agency costs to analyze this relationship. The findings reveal that managerial myopia adversely affects sustainable capital investment and significantly impedes long-term green innovation activities within firms. Specifically, managerial myopia escalates agency costs, thereby stifling green innovation initiatives. This study elucidates that the agency dilemma in corporations, stemming from the dichotomy between ownership and management, is exacerbated by managerial myopia. Such a condition fosters a conflict between shareholders and managers, with the latter often prioritizing short-term gains over long-term value creation. This misalignment not only hinders the long-term trajectory of corporate development but also diminishes overall corporate value, thereby undermining green innovation efforts. The results underscore the detrimental impact of managerial myopia on the progression of green innovation. Consequently, it is imperative for corporate owners to acknowledge the pivotal role of management behavior in fostering green innovation and to actively mitigate the adverse effects of managerial myopia on corporate development.
Authors and Affiliations
Gongwen Xu, Dhakir Abbas Ali, Amiya Bhaumik
Keywords
Related Articles
- EP ID EP731979
- DOI https://doi.org/10.56578/jgelcd020304
- Views 80
- Downloads 0
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