Author(s)

Nan Yang^*, WenXi Sun

Affiliation(s)

School of Economics and Management, Anhui Normal University, Wuhu 241000, Anhui, China.

Corresponding Author

Nan Yang

ABSTRACT

The study examines the impact of executives’ environmental backgrounds on corporate green innovation bubbles, analyzing a sample of Chinese listed firms from 2010 to 2022. The findings indicate that appointing executives with environmental expertise significantly mitigates green innovation bubbles, a phenomenon characterized by the decoupling between the quantity and quality of green innovation. Mechanism analyses reveal that such executives operate through two key channels: by enhancing the green cognition of the management team and by improving government–enterprise communication. Furthermore, cross-sectional tests show that the restraining effect is more pronounced under specific conditions—particularly in firms facing higher performance pressure, those with higher resource allocation efficiency, or those receiving fewer government green R&D subsidies. Overall, the results suggest that executives with environmental backgrounds help firms shift their focus from short-term innovation metrics toward substantive green innovation. These insights offer meaningful implications for corporate governance and for policy design aimed at fostering high-quality green transitions.

KEYWORDS

Executive's environmental background; Green innovation bubbles; Executives' green cognition;  Government enterprise linkage

CITE THIS PAPER

Nan Yang, WenXi Sun. Executives' environmental backgrounds and green innovation bubbles: evidence from Chinese listed firms. World Journal of Economics and Business Research. 2026, 4(1): 41-53. DOI: https://doi.org/10.61784/wjebr3087.

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