CEO Foreign Experience and Green Innovation: Evidence from China

We examine whether and how CEO foreign experience affects firm's green innovation. Using a sample of Chinese public companies and hand-collected CEO foreign experience data, we document a positive association between CEO foreign experience and corporate green innovation. Furthermore, consistent with the view that CEOs with foreign experience would play a more significant role when provided with more resources, we find that the positive relationship is more pronounced in less financially constrained firms, in state-owned enterprises, and in less competitive industries. Additional analyses indicate that enhanced environmental ethics and general competency are two potential mechanisms through which CEO foreign experience affects corporate green innovation. Finally, we find that CEO foreign experience is positively related to green innovation quality and internationalization. Collectively, these findings suggest that CEO foreign experience is a significant factor for corporate green innovation in emerging markets.

Automated summary

This study examines the impact of CEO foreign experience on firm's green innovation and explores the mechanisms behind it. The findings reveal a positive correlation between CEO foreign experience and corporate green innovation. Moreover, this positive relationship is more pronounced in financially unconstrained firms, state-owned enterprises, and less competitive industries. The study also suggests that enhanced environmental ethics and general competency serve as potential mechanisms through which CEO foreign experience influences corporate green innovation. Lastly, it is found that CEO foreign experience is positively associated with green innovation quality and internationalization.