The impact of independent directors and ESG performance on eco-innovation: Evidence from Chinese listed companies

This study examines the essential role of eco-innovation in harmonising ecological sustainability with economic growth while tackling urgent environmental issues.This study uses social networks, resource dependence, and stakeholder theories to scrutinise the relationship among independent directors, ESG performance, and eco-innovation.Based on the data of 4,902 listed Chinese companies from 2010 to 2023, this study reveals that independent directors and ESG performance can significantly promote eco-innovation.This study also finds that internal corporate contexts can affect the relationship between independent directors, ESG performance, and eco-innovation.Furthermore, the results indicate that the relationship among independent directors, ESG performance, and eco-innovation is positively moderated by digital transformation.This study also offers noteworthy implications for corporations seeking eco-innovation performance and policymakers seeking ways to accomplish the mission of carbon dioxide reduction.