Managerial Myopia and Enterprise Green Total Factor Productivity: Perspectives on the Supervisory Effect and Incentive Effect

Enhancing green total factor productivity is essential for the development of a green economy. However, from a micro perspective, it remains unclear how management, as the primary decision-maker, influences enterprise green total factor productivity. Drawing on the perspectives of supervisory and incentive effects, this study examines the impact of managerial myopia on enterprise green total factor productivity, using data from Chinese industrial companies listed on the A-share markets of Shanghai and Shenzhen from 2007 to 2022. The findings indicate that managerial myopia significantly reduces enterprise green total factor productivity. Tests for moderation effects reveal that green investors and low-carbon city pilot policies, through supervisory effects, as well as equity incentives and environmental protection subsidies, through incentive effects, can effectively mitigate the negative impact of managerial myopia on enterprise green total factor productivity. Further analysis suggests that managerial myopia hinders green innovation activities within enterprises by reducing both the quality and the quantity of green innovation, thereby inhibiting green total factor productivity. This study contributes to the understanding of the impact of managerial myopia on enterprise green total factor productivity, offering empirical evidence and policy implications for addressing managerial myopia to enhance enterprise green total factor productivity.