Executives’ ESG cognition and enterprise green innovation: Evidence based on executives’ personal microblogs

Abstract

Based on cognitive theory, we investigated the influence of executives’ ESG cognition on corporate green innovation using data from Chinese manufacturing listed companies from 2010 to 2019. The paper first constructs a metric of ESG cognition of company executives by presenting a quantitative analysis of data from their personal microblogs using textual analysis. The findings show that executive ESG perceptions significantly improve corporate green innovation. After addressing the endogeneity issue through a series of robustness tests, the findings of this paper still held true. Further research found that the enhancement effect of executive ESG perceptions on firms’ green innovation level was mainly found in the sample without heavy pollution and with lower financing constraints and a higher marketization process. This study makes an important contribution to the research on corporate green innovation based on the perspective of executive ESG cognition while also providing a theoretical basis and practical reference for corporate green innovation practices.