Does negative environmental performance feedback affect corporate green innovation? Evidence from China

Purpose Previous research on performance feedback has mainly focused on financial performance feedback, largely overlooking environmental performance feedback. This paper aims to explore the impact of negative environmental performance feedback on corporate green innovation and its underlying mechanism. Design/methodology/approach Drawing on the behavioral theory of the firm, this study uses data from Chinese listed manufacturing firms from 2010 to 2022 to examine the relationship between negative environmental performance feedback and corporate green innovation through ordinary least squares regression analysis. Findings The results show that negative environmental performance feedback has a U-shaped effect on corporate green innovation. This relationship is mediated by executive environmental attention. Furthermore, environmental regulation negatively moderates the relationship between negative environmental performance feedback and corporate green innovation. Originality/value This study contributes to the performance feedback literature by revealing how negative environmental performance feedback influences corporate green innovation.