Financial performance feedback, institutional ownership and green innovation: evidence from China
ISSN: 1750-614X
Article publication date: 2 May 2023
Issue publication date: 8 February 2024
Abstract
Purpose
The purpose of this study is to examine whether and how financial performance feedback influences green innovation performance by drawing on the behavioral theory of the firm (BTOF) and relying on motivation-based logic.
Design/methodology/approach
A total of 17,558 firm-year observations from 3,062 publicly traded firms in China are used as the research sample.
Findings
The results reveal that low-performing firms are less likely to conduct green innovation activities because managers burden pressure to meet short-term targets. This study further finds that these relations are moderated by institutional ownership.
Originality/value
This study contributes to the BTOF literature by linking performance feedback to green innovation activities. This study applies a motivation-based logic to relate performance below and above aspirations to green innovation activities. This study introduces institutional ownership as a boundary condition.
Keywords
Acknowledgements
This work was supported by the National Natural Science Foundation of China [Grant number 72091312; 71902174] and Youth Fund of University of Science and Technology of China [Grant number WK2040000049].
Citation
Yang, J. and Chen, X. (2024), "Financial performance feedback, institutional ownership and green innovation: evidence from China", Chinese Management Studies, Vol. 18 No. 2, pp. 526-549. https://doi.org/10.1108/CMS-09-2022-0311
Publisher
:Emerald Publishing Limited
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