Impact of independent director network on corporate green innovation: Evidence from Chinese listed companies

Abstract

AbstractGreen innovation has an essential impact on harmonizing the relationship between the ecological environment and economic development, and alleviating environmental problems. Drawing on social network theory, this article proposes the relationship between the social network of independent directors and corporate green innovation. Using the data from listed Chinese companies from 2008 to 2020, this study finds independent directors in the center of the network can significantly promote corporate green innovation. The promotion is stronger in non‐state enterprises and heavy polluters. Further research finds that internal and external corporate contexts can influence the relationship between independent director networks and green innovation. With the more slack resources, the higher operational risk level, and the more competitive the market, the role of the independent directors' social network on corporate green innovation is stronger. This article contributes to the understanding of the impact mechanisms of corporate green innovation and also helps promote green innovation.