The Impact of Local Chairpersons on Green Innovation: Evidence from China

Drawing on prior research, this study analyzes panel data from listed companies (2013–2023) to examine how chairpersons’ local social connections affect corporate green innovation. Specifically, it explores how such networks provide access to resources and policy advantages through social capital, thereby shaping firms’ green innovation. The findings reveal that local chairpersons negatively affect firms’ green innovation. Firms led by local chairpersons undertake significantly fewer green innovation initiatives than those with non-local leaders. Moreover, ESG performance and a strong legal environment can mitigate the negative impact of local chairpersons on green innovation. In contrast, stable executive teams may alleviate the adverse effect of local chairpersons on corporate green innovation by curbing myopic managerial behavior and reinforcing a long-term strategic orientation.