Corporate Governance and Corporate Green Innovation

After the COVID-19 pandemic, the global economy has experienced a sluggish recovery, with declining trade and rising demands for corporate innovation. In China, while the economy is shifting toward high-quality development, envi-ronmental issues have become a central concern of society. Against this back-drop, the impact of corporate governance on green innovation has attracted growing scholarly and practical attention. An effective governance structure not only provides strategic guidance, resource allocation, and institutional safeguards but also plays a crucial role in advancing environmentally oriented innovation. Efficient boards of directors and management teams can improve decision-making quality, balance economic performance with social responsi-bility, and promote the research and application of green technologies. Moreo-ver, sound governance mechanisms help build trust among stakeholders, there-by facilitating the smooth implementation of green innovation projects. Existing studies further suggest that firms with stronger green governance awareness tend to demonstrate greater technological creativity and competitiveness, driven by both regulatory pressures and market demand. Therefore, examining the role of corporate governance in green innovation not only enriches the the-oretical understanding of sustainable development but also offers practical im-plications for achieving ecological and economic synergies in China’s new de-velopment context.

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Publication Details

Journal
Economics & Business Management
Published
2025-08-25
DOI
https://doi.org/10.63313/ebm.9091
Primary Topic
Corporate Social Responsibility Reporting
Type
article
Field-Weighted Citation Impact
0.00
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article

Corporate Governance and Corporate Green Innovation

S. M. Ferdous Azam, Yanfeng Xue
Economics & Business Management
Corporate Social Responsibility Reporting
article

Corporate Governance and Corporate Green Innovation

S. M. Ferdous Azam, Yanfeng Xue
article en

Abstract

After the COVID-19 pandemic, the global economy has experienced a sluggish recovery, with declining trade and rising demands for corporate innovation. In China, while the economy is shifting toward high-quality development, envi-ronmental issues have become a central concern of society. Against this back-drop, the impact of corporate governance on green innovation has attracted growing scholarly and practical attention. An effective governance structure not only provides strategic guidance, resource allocation, and institutional safeguards but also plays a crucial role in advancing environmentally oriented innovation. Efficient boards of directors and management teams can improve decision-making quality, balance economic performance with social responsi-bility, and promote the research and application of green technologies. Moreo-ver, sound governance mechanisms help build trust among stakeholders, there-by facilitating the smooth implementation of green innovation projects. Existing studies further suggest that firms with stronger green governance awareness tend to demonstrate greater technological creativity and competitiveness, driven by both regulatory pressures and market demand. Therefore, examining the role of corporate governance in green innovation not only enriches the the-oretical understanding of sustainable development but also offers practical im-plications for achieving ecological and economic synergies in China’s new de-velopment context.

Economics & Business ManagementVol. 2(3)
Management and Science University (MY)
Openalex Percentile: Top 67%
Corporate Social Responsibility Reporting
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