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Change Starts Within: Does Managerial Ability Matter to Green Innovation?

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Jade 1
Monday, July 1, 2024
4:45 PM - 5:00 PM

Presenter

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Dr Wei Cai
Assistant Professor in Accounting
Nottingham University Business School China

Change Starts Within: Does Managerial Ability Matter to Green Innovation?

Abstract

This study delves into the crucial link between managerial ability and green innovation. Motivated by the need for sustainable business practices and the pivotal role innovation plays in environmental sustainability, we identify a significant gap in the existing literature: the specific impact of managerial ability on fostering green innovation has not been adequately explored. Our research is anchored in the resource-based view, arguing that managerial ability is a strategic resource that can significantly influence a firm’s capacity for green innovation. Our empirical analysis employs multiple regression analysis on a dataset of 2,455 Chinese A-share listed companies from 2008 to 2022, examining the relationship between managerial ability and green innovation. To ensure a thorough investigation, we control for both firm-specific and year-specific fixed effects. Our findings reveal a significant positive correlation between managerial ability and green innovation, highlighting the critical role of managerial competencies in enhancing environmental innovation. Notably, subgroup analyses indicate that this relationship is more pronounced in state-owned enterprises, firms with a higher proportion of institutional investors, and in contexts with stricter environmental regulations and less developed product markets. These results not only fill the identified gap in the literature by providing empirical evidence of the impact of managerial ability on green innovation but also offer practical insights for businesses, managers, and policymakers looking to promote sustainable innovation.

Biography

Dr. Wei Cai is an Assistant Professor in Accounting at Nottingham University Business School China (NUBS China). He received his PhD in Accounting from the University of Waikato (New Zealand). He has published many papers in accounting and finance journals. Wei also serves as a peer reviewer for leading academic outlets, such as Energy Economics (ABS: 3), International Review of Financial Analysis (ABS: 3), Research in International Business and Finance (ABS: 2), and Pacific Accounting Review (ABDC: B), etc. He serves as the PI (Principal Investigator) of a provincial-ministerial level research project. Before joining NUBS China, Wei worked in the University of Waikato and the Chinese Institute of Certified Public Accountants. Prior to his academic career, Wei served as an auditor at RSM China. He holds several professional qualifications, such as Chinese Certified Public Accountant (CICPA), US Certified Management Accountant (CMA), Certified Internal Auditor (CIA) and Certified Practising Accountant (CPA Australia), etc.

Chair

Xing (Alex) Yang
Lecturer
University of Auckland

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