Abstract

This study investigates the impact of politically connected directors on the green innovation propensity of non-state-owned firms. We also examine the moderating effect of CEO characteristics, such as gender, age, and role duality, on the relationship between politically connected directors and green innovation. Analyzing data from A-share non-financial non-state-owned firms listed on the Shanghai and Shenzhen stock exchanges from 2008 to 2021, we find robust evidence that politically connected directors enhance a firm's inclination towards green innovation. Notably, this effect is more pronounced in firms led by female CEOs, younger CEOs, and those without CEO role duality. After addressing potential endogeneity concerns, our results remain consistent. This research has significant implications for various stakeholders, including managers, investors, and policymakers at both national and global levels, offering valuable insights into the role of corporate governance and leadership in driving sustainable innovation.