The Impact of Managerial Myopia on Corporate Green Innovation (Asia Pacific Economic and Management Review)

Summary

• The evidence comes from 33,813 firm-year observations on 4,661 A-share firms listed in Shanghai and Shenzhen between 2010 and 2021.p.1
• Managerial myopia holds back corporate green innovation.p.1
• Much of the damage is indirect: myopic managers build fewer strategic alliances and cut R&D spending.p.1
• Digital transformation weakens the negative myopia-green innovation link and eases the myopia-alliance and myopia-R&D relationships.p.1
• In the baseline regression, the myopia coefficient on green innovation is -0.554.p.9
• The interaction of myopia with digital transformation is 0.016 for green innovation, 0.015 for alliances and 0.012 for R&D.p.10

Key insights

1. The sample covers 33,813 firm-year observations of Chinese A-share firms.p.1
2. Managerial myopia restrains corporate green innovation.p.11
3. Myopia significantly reduces the formation of strategic alliances, which carry part of its influence to green innovation.p.11
4. Myopia significantly reduces corporate R&D investment, which also acts as a channel to green innovation.p.11
5. The myopia coefficient is -0.477 in the strategic alliance model and -1.913 in the R&D model.p.9
6. Digital transformation positively moderates the myopia-green innovation, myopia-alliance and myopia-R&D relationships.p.11